milk, milk grades, milk prices
Surpluses of milk on the market contributed to the reduction of purchase prices


Surpluses of raw milk in Ukraine and low demand in the domestic market affect the reduction of purchase prices, says the analyst of the Association of Milk Producers, Georhiy Kukhaleishvili.

The average purchase price of Extra Grade milk as of May 5 was 13.99 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 14.60 UAH/kg without VAT. The upper limit of the price range decreased by 0.40 UAH, and the lower limit decreased by 0.10 UAH for the last month.

Higher Grade on average costs 13.99 UAH/kg without VAT (-0.39 UAH). Prices for Higher Grade milk range from 13.40 to 13.90 UAH/kg without VAT. Compared to the monitoring results of the first half of April, the lower limit of the price range decreased by 0.10 UAH, and the upper limit decreased by 1.10 UAH.

The average price of Grade I milk was 13.29 UAH/kg without VAT, which is 0.23 UAH less compared to the price in the first half of April. The minimum price in farms was 12.65 UAH/kg, and the maximum price was 14.10 UAH/kg. Over the last month, the lower limit of the price range has decreased by 0.10 UAH, while the upper limit has not changed.

Accordingly, the weighted average price of the three grades amounted to 13.76 UAH/kg without VAT, which is 0.34 UAH less than a month ago.

Giorgiy Kukhaleishvili notes that in May, the purchase prices decreased, because there was a surplus of raw milk for processing on the market. A high supply of raw milk on dairy farms is accompanied by low demand from milk processing enterprises. Raw milk is becoming cheaper in Ukraine despite the deficit that existed on the market in autumn and winter, as the consumption of finished products in the country decreases and the prices of exchange goods decrease. Compared to 2023 and 2022, the cheese product, which is mainly exported to Kazakhstan, fell in price the most. Today, russia and belarus sell cheese products in Kazakhstan at dumping prices, and therefore Ukrainian companies are also forced to reduce the price of the product in order to be competitive in this market.

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