milk,
milk grades,
milk prices
Purchase prices are going up because of lack of milk
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At the beginning of July, prices for raw milk were revised upward in Ukraine due to a certain shortage of raw milk on the domestic market and the increase in demand from milk processing enterprises. In the future, if milk production continues to decrease, another upward price revision is possible, — reports the analyst of the Association of Milk Producers Georgy Kukhaleishvili.
The average purchase price of Extra Grade milk as of July 1 amounted to 13.84 UAH/kg without VAT, which is 0.15 UAH more than a month ago. The price range for this grade in farms varies from 13.20 to 14.30 UAH/kg without VAT. The upper limit of the price range has increased by 0.20 UAH, and the lower limit has not changed over the past month.
Higher Grade on average costs 13.84 UAH/kg without VAT (+0.15 UAH). Prices for Higher Grade milk range from 13.20 to 14.30 UAH/kg without VAT. Compared to the monitoring results of the first half of June, the lower limit of the price range did not change, and the upper limit increased by 0.20 UAH.
The average price of Grade I milk was 13.04 UAH/kg without VAT, which is 0.09 UAH more than a month ago. The minimum price in farms was 12.65 UAH/kg and has not changed over the last month. The maximum price was 13.35 UAH/kg and increased by 0.15 UAH.
Accordingly, the weighted average price of the three grades amounted to 13.57 UAH/kg without VAT, which is 0.13 UAH more than a month ago.
George Kukhaleishvili notes that since the end of June, the demand for raw milk in Ukraine began to exceed the existing supply. Milk processing enterprises began to face a certain shortage of raw milk. This led to a point increase in raw milk prices at the beginning of July. The increase in fuel prices has not yet had time to affect changes in the price of milk at the factory. However, the shortage of raw milk affected the increase of the average price by 0.55 UAH on the spot market compared to June. In the future, purchase prices may continue to rise if the supply of raw milk on the domestic market is reduced.