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The heat pushes up the prices of raw milk
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In the second half of July, there was an increase in purchase prices in conditions of intense heat and a reduction in the supply of raw milk in Ukraine, — reports the analyst of the Association of Milk Producers, Heorhiy Kukhaleishvili.
The average purchase price of Extra Grade milk as of July 20 amounted to 14.12 UAH/kg without VAT, which is 0.43 UAH more than a month ago. The price range for this grade in farms varies from 13.60 to 14.60 UAH/kg without VAT. The upper and lower limits of the price range increased by 0.40 UAH for the last month.
Higher Grade costs an average of 14.12 UAH/kg without VAT (+0.43 UAH). Prices for Higher Grade milk range from 13.60 to 14.60 UAH/kg without VAT. Compared to the monitoring results of the second half of June, the lower and upper limits of the price range increased by 0.40 UAH.
The average price of Grade I milk was 13.20 UAH/kg without VAT, which is 0.25 UAH more compared to the price in the second half of June. The minimum price in farms was 12.65 UAH/kg, and the maximum price was 14.05 UAH/kg. Over the last month, the lower limit of the price range has not changed, and the upper limit has increased by 0.85 UAH.
Accordingly, the weighted average price of three grades amounted to 13.81 UAH/kg without VAT, which is 0.37 UAH more than a month ago.
Heorhiy Kukhaleishvili notes that purchase prices in Ukraine have risen under the influence of strong heat, which has led to a decrease in the productivity of cows and a reduction in the amount of milk, especially in households. The supply of raw milk on the domestic market is shrinking, while demand is growing. According to the Ukrainian Hydrometeorological Center, extremely hot and dry weather was observed in the second decade of July, due to the long-term influx of tropical air from North Africa. In certain regions of Southern and Central Ukraine, the air temperature exceeded 40 degrees Celsius. In the larger territory of Ukraine, the average decadal values were exceeded by 5−8 degrees and the absolute maxima of air temperature.