This week purchase milk prices had followed an upward trend since previous week. At the same time Extra grade was quite stable.

Yana Muzychenko, AMP’s analyzer announces this information.

The average price for raw milk of extra grade had stopped at the point of 9.41 UAH//kg (January 18th), which is similar to price of the previous week. Higher grade milk and milk of Grade I prices went up to 8.33 UAH/kg (+0.09 UAH).

For the nearest future we should expect the stabilization of milk purchase prices, but not retail prices on the shelf.

The factors that had influenced on the price formation were: devaluation of national currency, diesel gas oil price increase, decrease of milk production, dairy cattle cutback  in Ukraine.

Considerable influence on milk prices formation has devaluation of hryvnia, which affects the rise of producing costs: this month 1 dollar costs 27.47 UAH (NBU), which is 4.4% more than previous week (January 19th).

The price for diesel gas oil has changed since previous week (21.49 UAH per liter), which is 4.6% or 0.95 UAH more than price of the same period of the previous month.

The situation has also influenced on processors. The average price for milk with fat content 2.5% costs 16.25 UAH (December), which is 11.2% more than prices of last November. The same  significant increase was observed in butter pricing formation (82% fat) — 170.16 UAH/kg (+ 11.27%). Kefir had a price of 25.09 USD (+6.8%), cottage cheese — 90.43 UAH/kg (+7.3%) and Russian cheese — 148.42 UAH/kg (+6%).  

The drop in production continues to support the "appetite" of processors.

According to the last information of State Statistics Service of Ukraine production of milk in households of all categories in 2016 has reduced to 10.4 mln. tons (2.1%, or 228.2 ths. tons). Leaders are remain the same: Vinnitsia region (857.3 ths.tons; +2.3%), Poltava region (796.4 ths. tons; +0.2%), Khmelnitsky  region (591.2 ths.tons; +1.7%).

Ratio of industrial and milk from households increased by one dimensional point. The share of first in 2016 was 26.1%, while in 2015 it was 25.1%.

In total, for 2016 agricultural enterprises have produced 2 million 711 thousand. tons of milk (1.6% more than in 2015). Leaders of milk production were Poltava region (428.5 ths. tons.; +0.9%) and Cherkasy region (296.3 ths. tons; +0.8%).

Production in households continued its falling and at the end of the period showed had a results of 3.4%, up to 7 million 676 thousand. tons. Increase of production recorded only in Vinnytsia (659.6 ths. tons, +2.2%) and Khmelnitsky (434 8 ths. tons, +1.4%) regions, all the rest  have reduced production.

The number of heads of cattle for 2016 in Ukraine decreased by 2% and amounted to 3 million 674.9 thousand heads. In agricultural enterprises is accounted 1 million 213.2 ths. heads (-4.5%), and in households — 2 million 461.7 ths. heads (-0.7%).

Number of cows in Ukraine decreased by 2.7% and amounted to 2 million 107.1 ths.: 484 ths. (4,2%) in agricultural enterprises, and 1 million 623.1 ths. (2, 3%) in households.

Purchase milk prices, UAH/kg

Press Service of Association of milk producers