Since June 2011, milk prices in Ukraine have been increasing due to reduction of cow population as well as raw milk supply at the market. Processing companies have been increasing milk prices to stimulate deliveries.

In July, prices for milk from agricultural enterprises were 9% up (0.3 UAH/kg) from the previous month and reached the level of 3.3 UAH/kg. Milk from household plot owners was also sold at a higher price and cost 2.3 UAH/kg. It is 10.7% (0.2 UAH/kg) up as compared to June.

Prices for milk, produced by the members of the Association of Dairy Producers of Ukraine increased by 6.3% (0.2 UAH/kg) up to 3.55 UAH/kg.

Milk processors state that raw milk prices have not reached their peak yet. They will be getting higher during August. Some manufacturers had to increase prices for dairy products by 10%. Further milk price growth could result in 15% increase in prices for dairy products produced. This will definitely lead to some reduction in consumer’s demand. The processors will be forced to reduce the cost of production by means of paying less for milk delivered. Milk prices are expected to get lower in the fall.

MilkUA.Info