Milk Production,
milk,
milk prices
Surpluses of raw milk contribute to price stabilization
Raw milk prices in Ukraine are stabilizing due to a reduction in the volume of exports of exchange-traded goods during the lull in the global milk market during the Christmas and New Year holidays. The emergence of raw milk surpluses on the domestic market and reduced demand from dairy processing enterprises will likely contribute to a decrease in purchase prices in the short term, — reports Georgy Kukhaleyshvili, an analyst of the Association of Milk Producers.
The average purchase price of Extra Grade milk as of December 25 was 19.60 UAH/kg excluding VAT, which is 0.20 UAH more than a month ago. The price range for this grade in farms varies from 18.50 to 20.50 UAH/kg excluding VAT. The lower limit of the price range increased by 0.20 UAH, while the upper limit did not change over the last month. Compared to the indicators as of December 1, the price for Extra Grade decreased by 0.10 UAH.
Higher Grade costs on average 18.65 UAH/kg excluding VAT. The price has not changed compared to the monitoring results of November 25. Prices for Higher Grade milk range from 17.80 to 19.50 UAH/kg excluding VAT. Compared to the monitoring results of the second half of November, the lower limit of the price range increased by 0.40 UAH, and the upper limit decreased by 1.00 UAH.
The average price for Grade I milk was 17.65 UAH/kg excluding VAT and did not change compared to the second half of November. The minimum price in farms was 16.50 UAH/kg and increased by 0.50 UAH over the last month. The maximum price was 18.50 UAH/kg and fell by 0.50 UAH.
Accordingly, the weighted average price of the three grades was 18.63 UAH/kg excluding VAT, which is 0.07 UAH more than a month ago.
Georgy Kukhaleyshvili notes that purchase prices stabilized in the second half of December due to a decrease in demand for raw milk in Ukraine from dairy processing enterprises. Surpluses of raw milk appeared on the domestic market, which restrained price growth. This situation may be due to a reduction in dairy product exports during the Christmas period, when activity in the dairy market traditionally decreases.