This was reported by analyst of Association of Milk Producers of Ukraine (AVM) Yana Muzychenko.

According to the results of April, the average price for milk was 9.12 UAH/kg (including VAT), which is 0.44 UAH less the price of March. Higher Grade milk cost in average 9.01 UAH/kg (-0.12 UAH), and Grade I cost 8.40 UAH (-0.44 UAH).

May began with the continuation of the price fall. Extra Grade milk cost 8.85 UAH/kg, which is 0.23 UAH lower than the price of the end of April, Higer Grade cost 8.30 UAH/kg (-0.64 UAH), and Grade I was 7.90 UAH/kg (-0.81 UAH).

Processors explain these prices by the excess supply of milk on the market. But there is no seasonality in industrial dairy cattle breeding. The farms provide a stable supply of milk throughout the year, unlike individuals.

At the same time, while in summer individual farmers practice grazing, industrial farms continue to feed cattle with a stable rations, which recently have risen in price significantly. Over the past few months, the price for concentrated feed has skyrocketed catastrophically. For example, sunflower meal from November 2017 went up by 78.3% to 7666.7 UAH/t, soybean meal up by 16.7% to 14,000 UAH/t. It is the fact that 70% of the cost are feeds. Accordingly, the profitability of livestock breeding is again in deficit.