Milk Production, milk, milk prices
Surplus of raw milk puts pressure on purchase prices


Raw milk in Ukraine continues to fall in price due to the increase in milk production in households and the appearance of production surpluses on dairy farms. However, the situation may change with the onset of the summer heat and in the case of Ukraine's increase in the volume of exports of exchange goods, — reports the analyst of the Association of Milk Producers Georhiy Kukhaleishvili.

The average purchase price of Extra Grade milk as of May 5 was 13.73 UAH/kg without VAT, which is 0.39 UAH less than a month ago. The price range for this grade in farms varies from 13.40 to 14.20 UAH/kg without VAT. The upper limit of the price range decreased by 0.60 UAH, and the lower limit decreased by 0.10 UAH for the last month.

Higher Grade costs an average 13.73 UAH/kg without VAT (-0.39 UAH). Prices for Higher Grade milk range from 13.40 to 14.20 UAH/kg without VAT. Compared to the monitoring results of the second half of April, the lower limit of the price range decreased by 0.10 UAH, and the upper limit decreased by 0.60 UAH.

The average price of Grade I milk was 13.05 UAH/kg without VAT, which is 0.37 UAH less compared to the price in the second half of April. The minimum price in farms was 12.65 UAH/kg, and the maximum price was 13.40 UAH/kg. Over the last month, the lower limit of the price range decreased by 0.10 UAH, and the upper limit decreased by 0.70 UAH.

Accordingly, the weighted average price of three grades amounted to 13.50 UAH/kg without VAT, which is 0.38 UAH less than a month ago.

Georgiy Kukhaleishvili notes that significant surpluses of raw milk continue to put pressure on purchase prices in Ukraine. Since the middle of April, there has been an increase in the amount of milk produced in homestead farms under the influence of warm weather. Milk production is also growing on dairy farms. In such conditions, milk processing enterprises buy certain volumes of raw milk from households, since they are cheaper than at dairy farms, and use them for the production of dry milk and casein. In connection with that, prices for raw milk are falling on dairy farms, especially for large batches. The decrease in purchase prices for raw milk contributes to the improvement of the profitability of the production of exchange goods in Ukraine.

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