Milk Production,
milk,
milk prices
The growing import of dairy products and the decrease in purchasing activity of Ukrainians lead to a decrease in the price of raw milk
As of February 1, 2024, the average price of raw milk amounted to 14.19 UAH and decreased by 0.13 UAH for the last month. The main factors that influenced the decrease in the price of raw milk were growing imports and a decrease in the purchasing activity of Ukrainians, — reports the analyst of the Association of Milk Producers, Heorhiy Kukhaleishvili.
The average purchase price of Extra Grade milk as of February 1 amounted to 14.50 UAH/kg without VAT, which is 0.20 UAH higher compared to the price as of January 1. The price range for this grade in farms varies from 14.00 to 15.00 UAH/kg without VAT. The lower limit of the price range has not changed, and the upper limit has decreased by 0.20 UAH for the last month.
Higher Grade costs 14.50 UAH/kg on average without VAT. Over the last month, the price of this grade fell by 0.20 UAH. Prices for Higher Grade milk range from 14.00 to 15.00 UAH/kg without VAT. The lower limit of the price range did not change, and the upper limit fell by 0.20 UAH compared to the first half of January.
The average price of Grade I milk amounted to 13.57 UAH/kg without VAT and did not change from the last level. The minimum price in farms was 13.00 UAH/kg, and the maximum price was 14.28 UAH/kg. The lower and upper price ranges have not changed over the past month.
Accordingly, the weighted average price of three grades amounted to 14.19 UAH/kg without VAT and decreased by 0.13 UAH compared to January 1.
Heorhiy Kukhaleishvili suggests that, most likely, the decrease in the price of raw milk in Ukraine was influenced by the increase in the supply of imported butter and cheese. In January, Ukraine increased the import of butter by 23% compared to December, and cheese — by 30%.
The decrease in the purchasing activity of Ukrainians after the New Year holidays contributed to the accumulation of stock products in the warehouses of milk processing enterprises and the reduction of the shortage of raw milk.
It should be emphasized that the further decrease in purchase prices for raw milk creates additional pressure on farmers in wartime conditions. The deficit of working capital before spring sowing will encourage producers to increase the sale of cattle, the price growth of which amounted to +14% until December 2023, which may lead to a decrease in the number of cows.