milk,
milk prices,
grades of milk
Milk prices have gone down
Raw milk prices in Ukraine decreased in early January due to reduced demand from dairy processing enterprises during the New Year holidays. Further growth in purchase prices is likely during 2025 due to rising production costs, reports Georgy Kukhaleyshvili, an analyst of the Association of Milk Producers.
The average purchase price of Extra Grade milk as of January 6 was 19.10 UAH/kg excluding VAT, which is 0.60 UAH less than a month ago. The price range for this grade in farms varies from 18.50 to 19.50 UAH/kg excluding VAT. The lower limit of the price range has not changed, and the upper limit has decreased by 1 UAH over the last month.
Higher Grade costs an average of 18.35 UAH/kg excluding VAT (-0.35 UAH). Prices for Higher Grade milk range from 17.80 to 19.00 UAH/kg excluding VAT. Based on the monitoring results for the first half of December, the lower limit of the price range has not changed, and the upper limit has decreased by 0.50 UAH.
The average price for Grade I milk was 17.65 UAH/kg excluding VAT and did not change compared to the price in the first half of December. The minimum price in farms was 16.50 UAH/kg and did not change over the last month. The maximum price was 18.50 UAH/kg and remained at the same level as in early December.
Accordingly, the weighted average price of three grades was 18.37 UAH/kg excluding VAT, which is 0.32 UAH less than a month ago.
Georgy Kukhaleyshvili notes that the decrease in prices for raw milk in Ukraine at the beginning of the year was influenced by the fall in prices for butter and the decrease in purchasing activity in the market, which is traditionally observed during the New Year holidays. Ukrainian companies reduced butter export volumes in December due to the decrease in product prices on foreign markets. In particular, if at the end of September 2024 the price of butter in Western Europe reached 9,625 $/per ton, then as of January 3, 2025 it dropped to 7,350 $/per ton. Surpluses of raw milk appeared on the domestic market, and the maximum prices for Extra and Higher Grade milk went down due to the decrease in demand from dairy processing enterprises.