milk, milk grades, milk prices
The growth of raw milk prices has stopped


As of February 20, 2024, the average price of raw milk amounted to 14.19 UAH and decreased by 0.13 UAH for the last month. The growth of purchase prices restrains the accumulation of unrealized amounts of cheese on the market. Sales of domestically produced cheeses on the domestic market decreased due to too high prices, and imports of European competitors' products increased. Milk processing enterprises do not experience a shortage of raw milk, which restrains the growth of purchase prices, — says the analyst of the Association of Milk Producers, Georgy Kukhaleishvili.

The average purchase price of Extra Grade milk as of February 20 was 14.50 UAH/kg without VAT, which is 0.20 UAH higher than in the second half of January. The price range for this grade in farms varies from 14.00 to 15.00 UAH/kg without VAT. The lower and upper limits of the price range have 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 second half of January.

The average price of Grade I milk amounted to 13.57 UAH/kg without VAT and did not change over the last month. 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 20. Compared to the results of the monitoring carried out in early February, the price level remained unchanged.

Heorhii Kukhaleishvili suggests that the rise in prices for raw milk in Ukraine restrains the increase in the volume of imports of European cheeses and the decrease in sales of domestically produced cheeses in February. Since mid-autumn, the leading cheese makers raised the prices of their products three times, and during this period domestic cheese became more expensive by approximately 15−17%. High prices restrain the buying activity of Ukrainians, who pay attention to European cheeses as an alternative. Unsold products accumulate in the warehouses of milk processing enterprises, which does not contribute to the growth of demand for raw milk and, in turn, restrains the growth of purchase prices.

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