Purchase prices for milk in Ukraine rose in the second half of February due to demand from cheese makers and producers of fresh dairy products, low supply of raw milk on the domestic market in war conditions, and the impact of consumer inflation.
This is reported by the analyst of the Association of Milk Producers Georgii Kukhaleishvili.
As of February 21, the average purchase price of Extra Grade milk has increased by 0.05 UAH — up to 12.18 UAH/kg excluding VAT. Therefore, the range of prices for Extra Grade in enterprises was from 10.84 to 12.80 UAH/kg.
Higher Grade also became more expensive by 0.05 UAH — up to 12.18 UAH/kg, compared to the price as of February 7. In enterprises, the order of prices was from 10.00 to 12.10 UAH/kg.
The average price for Grade I has remained unchanged since the beginning of 2023 — 11.67 UAH/kg. The minimum price for Grade I milk as of February 7 was 10.00 UAH/kg, and the maximum was 11.90 UAH/kg.
The weighted average price of three grades increased by 0.04 UAH from the date of the last monitoring and amounted to 12.01 UAH/kg.
Raw milk prices are rising due to the limited supply of raw milk in Ukraine during the winter period, when the supply of milk and dairy products is traditionally reduced in the country. However, this year, an additional reason is the consequences of hostilities, which caused significant reductions in livestock in the homestead and industrial livestock sectors, as well as in the productivity of farms in the war-affected and front-line regions. According to preliminary estimates of the State Statistics Service, milk production in January amounted to 455.7 thousand tons and decreased by 12.6% compared to the same period of the previous year. The reduction was characteristic even in areas where hostilities do not take place.