According to the results of monitoring from November 1, extra grade milk went 6.2% up (7,21 UAH/kg). The highest price for it was paid in Kherson region — 8.30 UAH/kg, and the lowest — 7.40 UAH/kg in Zaporizhia region.

The average price for higheк grade milk reached 7.20 UAH/kg, which is 4.8% more than previous week. The maximum price for this grade was paid in Poltava region — 8.13 UAH/kg, and the lowest in Khmelnitsky region — 6.40 UAH/kg.

Over the period of the previous week price for milk of extra grade followed an upward trend to 2.5% — 6.89 UAH/kg. The maximum price for this grade was paid in Ternopil region — 7.50 UAH/kg, and the lowest — 6.20 UAH/kg in Vinnitsa region. The information is given by the Association of Milk Producers.

Average consumer prices for dairy products also were unstable. Thus, pasteurized milk with the fat content 2.5% went 0.30 UAH/kg up and its price was 18.30 UAH/kg. Average price for kefir (fermented milk) cost 20 UAH/kg, which is 0.20 UAH/kg more than last week, and butter price increased 4 UAH/kg (120.5 UAH/kg). «Russian» cheese price was stable this week.

According to the explanation of Association of Milk Producers experts milk and dairy products prices growing trend was caused by a number of previously established factors which continue «to keep them up».

Milk production decrease is caused by cutting down number of heads of cattle and seasonality. Starting from December farmers begin to dry off their cows. It will be another reducing factor for milk supply from the population and increase the deficit at the market. Processors already feel the shortages of raw milk, which is leading to price hike.

Cost of production increases and serves as one of reasons for advance in prices.

Situation on the currency market contributes to it: real rate of hryvna exchange in relation to dollar is 26.29 UAH (November 1), while previous week it cost 26.15 UAH (+ 0.14 UAH). Another factor that influences cost prices is diesel gas oil price. It increased 0.03 UAH/l up to 20.05 UAH/l.

Positive trend at the world market encourage Ukrainian producers to export production and causes price incensement at domestic market. Thus, on the latest GDT auction, milk products price index run high by 11.4% — 3327 $/t. This is the highest index for this year. Whole milk powder is a basic product which also influences auction prices. It went 19.8% up (3317 $/t), and nearly reached index of 2014. As a result, export prices for Ukrainian milk products will be increasing further.