The price for Ukrainian raw milk is too high as for market situation
Despite Russian ban on import, there are no big surpluses of milk on Ukrainian market. The situation is rescued by seasonal reduction of production.
In second half of October the market was less active in comparison with beginning of the month. After all, unclaimed raw milk appeared on the market after Russian ban on Ukrainian cheese products (from October 14).
At the same time there are no reasons to say that there is much free milk for resale in Ukraine. Period of minimal milk production in agricultural enterprises is still to follow — in November — beginning of December.
High-quality milk is valued expensively.
Average prices of raw milk from agricultural enterprises are grown again in Ukraine. It happened mostly because of an increase in the middle of the month. In the end of October they practically did not grow and made UAH 4.40-4.70/kg.
Agrarian holdings continue to value milk very expensively — UAH 4.60-5.00/kg. Some processors are still ready to overpay for short-term contracts with volumes of 20-100 tonnes a day.
Milk price should not be changed considerably in November, at least operators do not plan that. At the same time, when milk production is lowered the local conflicts still may cause an increase of price. Volumes of foreign trade will also influence changes of tendencies on raw milk market.