milk,
milk prices,
grades of milk
Prospects for stabilizing milk purchase prices
In the first half of March, there was another decrease in prices for raw milk in Ukraine. The supply of milk and finished products is high, and demand is low on the domestic market. However, there are signs of some stabilization of purchase prices in the second half of the month, — reports Georgy Kukhaleyshvili, an analyst at the Milk Producers Association.
The average purchase price of Extra Grade milk as of March 10 was 16.55 UAH/kg excluding VAT, which is 0.25 UAH less than a month ago. The price range for this grade in farms varies from 15.70 to 16.70 UAH/kg excluding VAT. The lower limit of the price range decreased by 0.80 UAH, and the upper limit decreased by 1.30 UAH.
Higher Grade costs an average of 16.30 UAH/kg excluding VAT (-0.35 UAH). Prices for Higher Grade milk range from 15.50 to 16.50 UAH/kg excluding VAT. Based on the monitoring results of the first half of last month, the lower limit of the price range decreased by 0.70 UAH, and the upper limit decreased by 1.00 UAH.
The average price for Grade I milk was 15.85 UAH/kg excluding VAT and decreased by 0.15 UAH compared to the first half of last month. The minimum price in farms was 15.00 UAH/kg and decreased by 1.00 UAH. The maximum price was 16.20 UAH/kg and decreased by 0.80 UAH.
Accordingly, the weighted average price of the three grades was 16.40 UAH/kg excluding VAT, which is 0.25 UAH less compared to the previous period.
Georgy Kukhaleyshvili notes that the decrease in raw milk prices in Ukraine in early March was due to the high supply of raw milk and low demand for finished products on the domestic market. Surpluses of raw milk put pressure on purchase prices. In current market conditions, the price difference between grades is decreasing. The effect of the increase in raw milk prices, which occurred in the fourth quarter of 2024, has been completely offset. The profitability of the production of exchange-traded goods is decreasing. The production of butter, powdered milk and casein has become unprofitable.