milk,
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milk prices
Milk prices have increased, but stabilization is expected
The growth of purchase prices continues against the backdrop of a shortage of raw milk in Ukraine and demand from milk processing enterprises. Although, the demand for raw milk is not as high as in October, and a certain stabilization of prices is likely at the beginning of December. A significant decrease in the price of raw milk is unlikely, even due to a reduction in the export of exchange goods, since the drop in prices should be restrained by the low reserves of butter in Ukraine, — reports the analyst of the Association of Milk Producers Heorhiy Kukhaleishvili.
The average purchase price of Extra Grade milk as of November 1 amounted to 18.95 UAH/kg without VAT, which is 1.25 UAH more than a month ago. The price range for this grade in farms varies from 17.75 to 19.80 UAH/kg without VAT. The upper and lower limits of the price range increased by 1.50 UAH for the last month.
Higher Grade on average costs 18.40 UAH/kg without VAT (+ 1.70 UAH). Prices for Higher Grade milk range from 17.00 to 19.10 UAH/kg without VAT. Compared to the monitoring results of the first half of October, the upper limit of the price range increased by 1.80 UAH, and the lower limit increased by 1.90 UAH.
The average price of Grade I milk was 16.70 UAH/kg without VAT, which is 0.60 UAH more compared to the price in the first half of October. The minimum price in farms was 16.00 UAH/kg, and the maximum price was 18.00 UAH/kg. Over the last month, the upper and lower limits of the price range have increased by 1.50 UAH.
Accordingly, the weighted average price of the three grades amounted to 18.02 UAH/kg without VAT, which is by 1.38 UAH more than a month ago.
Heorge Kukhaleishvili notes that the driver of the increase in purchase prices in Ukraine remains the shortage of raw milk on the domestic market and high demand from milk processing enterprises. This is probably due to a temporary reduction in demand for butter, milk powder and cheeses. But it is likely that the current demand for butter on export markets should contribute to the growth of prices for raw milk in Ukraine. In the last 367 GDT trades, the prices of milk fat and other exchange commodities, excluding lactose, went up again.
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