This information is announced by Analytical department of AMP.

The main factor that forms milk pricing, is an increase of milk supply in the market. It is going to have great impact on pricing in future. This is connected with calvings on industrial farms and in households, as result of this milk yields increase a swell. Tendency of milk production growth will last till the middle of the summer.

Possessors carry on negotiations about gradual reduction of prices. Duration of this process no one can predict, as it is unknown what amount of milk farms can provide. At the same time situation with the payment of subsidies to industrial farms remains unclear.

In addition, according to official information of Customs statistics exports of dairy products in January amounted to 6.5 thousand t., which is 21% less than in December 2016. Prices of export contracts are falling down under pressure of pricing policy stabilization on the world dairy market.

Another growth constraining factor is the strengthening of Ukrainian national currency in relation to US dollar. This week national currency has added 0.05 UAH — to 27.03 UAH/doll.

But, stabilisation of hryvna still doesn’t have influence on pricing for diesel gas oil. Its price continues to rise moderately.

Average price for Extra Grade milk as of February 7 is 9.40 UAH/kg, which is 0.03 UAH less than previous week price. Maximum price for this grade was paid in Sumy region — 9.56 UAH/kg, lowest one was paid in Khmelnitsky region — 9.10 UAH/kg.

Average price for Higher Grade milk stopped at the level of 8.86 UAH/kg (+0.06 UAH/kg since last week). Maximum price for this grade was paid in Kharkov region — 9.44 UAH/kg, lowest price — 8.30 UAH/kg — was paid in Rivne region.

Price for Grade I showed falling trend this week (-0.02 UAH/kg) — 8.60 UAH/kg. The highest price — 9.20 UAH/kg was paid in Kyiv region, and lowest in Lviv region — 7.20 UAH/kg.

All the above listed factors had an impact on pricing for dairy products on the shelf of the markets this week. Milk and imported cheeses have lost in price. Thus, milk with fat content 2.5% this week lost 0.26 UAH/kg and costed 22.29 UAH/kg. Price of imported “Maasdam cheese” and “Edam” went down to 280.79 UAH/kg and 207.13 UAH/kg respectively (-6 UAH/kg and 2.24 UAH/kg).

Russian cheese added 0.46 UAH/kg this week to 158.77 UAH/kg, yogurt added 0.32 UAH/kg to 46.94 UAH/kg. Butter price have raised sharply this week to 170.46 UAH/kg (+3 UAH/kg).

Purchase milk prices, UAH/kg

Source: АМP