In Ukraine, summer usually brings decreasing in milk prices because of greater seasonal supply, but situation in the dairy market this year is not typical. In June, milk prices started to grow and reached the level 3.5 UAH/L.

According to the Ukrainian Club of Agrarian Business, the situation will aggravate by autumn and the dairy market will face shortage of raw milk as well as consumers – growth of prices for dairy products.

During last months, milk production fell down by 3% due to further reduction in cow population in the country. The Government tries to stimulate the development of dairy production. The Administration has already changed the previous mechanism of state subsidies paid to dairy producers, which, according to the officials, proved to be ineffective. They also promise to administer UAH 2,000,000,000 to agriproducers for building and renovating cow barns and installing new equipment to promote dairy production at farming enterprises and improve milk quality.

milkUa.info