butter,
milk,
milk prices
Cheap butter puts pressure on raw milk prices in Ukraine

Unsold exchange goods, increasing unprofitability of the milk powder/butter pair production, and declining butter prices in Europe and the world are holding back the growth of raw milk prices in Ukraine, reports Georgy Kukhaleyshvili, an analyst of the Association of Milk Producers.
The average purchase price of Extra Grade milk as of September 6 was 17.45 UAH/kg excluding VAT, which is 0.10 UAH more than in the previous month. The price range for this grade in farms varies from 17.00 to 18.20 UAH/kg excluding VAT.
Higher Grade costs an average of 17.15 UAH/kg excluding VAT. The price has not changed over the past month. Prices for Higher Grade milk range from 16.80 to 17.60 UAH/kg excluding VAT.
The average price for Grade I milk was 16.80 UAH/kg excluding VAT and did not change compared to the previous month. The minimum price on farms was 16.50 UAH/kg. The maximum price was 17.20 UAH/kg.
The lower and upper price ranges for all grades have not changed over the past month. Prices also remained stable relative to the results of monitoring in the second half of September. Compared to the same period last year, the price of Extra Grade decreased by 0.25 UAH.
Accordingly, the weighted average price of the three grades was 17.35 UAH/kg excluding VAT, which is 0.05 UAH more than the previous month.
Georgy Kukhaleyshvili notes that the growth of prices for raw milk in Ukraine is being held back by a number of factors. Currently, the supply of exchange-traded goods on the domestic market outweighs demand. Dairy processing plants have been operating on a warehouse basis since mid-August after the suspension of milk exports to the EU after quotas were exhausted. At the same time, demand on the domestic market remains sluggish due to a decrease in the number of consumers and a reduction in the purchasing power of the population. Sales of dairy products in supermarkets increase only in the case of promotional discounts. So now warehouses in Ukraine are almost completely filled with exchange-traded goods, which puts pressure on milk prices.