Ukrainian Farm-gate price is going down, but slowly
It becomes more free milk in Ukraine and processors have to reduce prices for it in conditions of weak demand for dairy products.
Last decade of May was very difficult for processors. Those who have financial possibilities still may stockpile the products in hope of improving in medium-term prospect. Others sell the products at the prices below their cost.
The situation with skimmed milk is especially failure: because of expensive energy resources and low export prices for SMP, many processors decided to not start drying.
Therefore price for skimmed milk has declined by almost 1 hryvnia for last two weeks.
Prices for milk from agricultural enterprises and households fall not so quickly as spot prices.
Ukrainian operators can only wait and hope for good changes on the world market. Without export volumes the processors will be compelled to reduce milk prices, and farmers – to increase culling.