Monitoring of milk prices: stabilization should be expected in December
At the end of the year, the raw milk market seems to be entering a «quiet period». The activation of foreign trade in summer and early autumn made it possible to visually accelerate the prices of milk in the domestic market. However, compared to European ones, they still remain a third lower.
This is reported by Yana Linetska, the analyst of the Association of Milk Producers.
However, since the beginning of November, due to the deterioration of the global situation and interruptions in electricity supply, the price trend for Extra Grade milk began to slow down, and in the second half it practically stopped. The prices of Higher Grade milk and Grade I still had a tightening effect.
Thus, as of November 23, the average purchase price for Extra Grade milk amounted to 12.14 UAH/kg excluding VAT, which is only 0.6% higher than the price of the first decade of the month. The increase in the same period of October was about 2.5%. The price range, depending on the size of the batch, ranged from 11.75 to 12.50 UAH/kg.
Higher Grade rose in price by 1.27% compared to the beginning of November — up to 11.95 UAH/kg. The price corridor was within 11.75−12.30 UAH/kg.
Grade I rose in price by 1.7% to 11.59 UAH/kg. The price of such milk ranged from 11.27 to 11.90 UAH/kg.
The weighted average price of the three grades rose by 1.1% to 11.89 UAH/kg.
Energy terrorism of unhealthy neighbors remains the main problem of the dairy industry and the economy in general. This is a rather significant restraining factor in the work of both dairy farms and processing plants. However, despite this, the demand for milk currently remains active. There is no urgent need for it, but free parties are not foreseen either. That is why, in December, we should expect a lateral trend in purchase prices for milk and stabilization in terms of grades.