Previous week extra grade milk went 0,06 UAH up (7,21 UAH/kg). The highest price for it was paid in Poltava region — 8.20 UAH/kg, and the lowest — 7.40 UAH/kg in Zaporizhia region.

The average price for the higher grade milk reached rate of 7.32 UAH/kg, which is 0.12 UAH more than the price of the previous week. The maximum price for this grade was paid in Dnepropetrovsk region — 8.30 UAH/kg, and the lowest in Lugansk region — 6.20 UAH/kg. The information is given by the Association of Milk Producers.

The price for milk of Grade I, went 0,16 UAH/kg up, and crossed the line of  7 UAH It cost 7.05 UAH/kg. Maximum price — 7.50 UAH/kg for this grade was paid in Ternopol and Volynsk region, while in Lviv region, processors paid only 6.20 UAH/kg for this grade.

According to the AMP data, prices are increasing on the supermarket shelves as well. Thus, pasteurized milk with the fat content of 2.5% went 0.20 UAH/kg up and its price was 18.70 UAH/kg. Average price for kefir (fermented milk) was 20.10 UAH/kg, which is 0.10 UAH/kg more. Butter price added 2.50 UAH/kg to its price comparing previous week (123 UAH/kg). “Russian” cheese price wasn’t stable, it added 2 UAH, price for this product reached the rate of 130.4 UAH/kg.

Shortening of milk production is one of the reasons of this price increase, following experts’ opinion. Thus, for ten months of 2016 only 9 mln and 26.1 thousand tons of raw milk was produced in Ukraine, which is 2.3% lower than previous year. In October 2016, 855 thousand tons of raw milk was produced (10% less, than in September). The reason of this shortening is the decrease of cattle starting from the crisis of 2014. Besides, purchase price for milk has not changed in the course of last two years. That caused deficit at the market. At the same time, season influences production as much as other factors (cows are less productive during winter-autumn time, which causes increase of raw milk price). Contesting with the milk amount, processors raise its price. Some of them (first of all, companies operating on the domestic market) even work at a loss.

Cost of production keep on increasing. Situation on the currency market contributes to it. The real rate of hryvna exchange in relation to dollar lost its position starting from the previous week. On November 11 it cost 25.61 UAH, while on Monday, November 7^th it cost 25.57 UAH (+ 0.04 UAH). Another factor that influences cost prices is diesel price, which added 0.42 UAH/l to 20.47 UAH/l.

Complex of all these factors resulted in price incensement on shelves — average retail prices for dairy products went up from 0.10 UAH to 2 UAH last week. Whole milk products producers are trying not to raise retail prices, as sales performance start to fall actively. Some of transnational processors have started different kinds of actions to maintain sales in a way. Export-oriented companies try to correlate the prices influenced by the growth of export and review price lists the domestic market actively. It primarily has to do with butter, cheese and cheese products.