milk,
milk prices
Declining purchase prices pose risks for the dairy industry
Reduced exports, weak demand on the domestic market, lower world prices for commodities and the consequences of blackouts will affect the decline in prices for raw milk. Things in the dairy industry may improve by strengthening the fight against counterfeiting and gray imports of dairy products into Ukraine, - reports Georgy Kukhaleyshvili, an analyst of the Association of Milk Producers.
The average purchase price of Extra Grade milk as of November 10 was 17.05 UAH/kg excluding VAT, which is 0.20 UAH less than the previous month. The price range for this grade in farms varies from 16.50 to 17.50 UAH/kg excluding VAT. The lower price range decreased by 0.50 UAH, and the upper one by 0.70 UAH.
Higher Grade costs an average of 16.90 UAH/kg excluding VAT, which is 0.15 UAH lower than the previous month. Prices for Higher Grade milk range from 16.50 to 17.10 UAH/kg excluding VAT. The lower price range decreased by 0.30 UAH, and the upper one by 0.50 UAH.
The average price for Grade I milk was 16.50 UAH/kg excluding VAT, which is 0.15 UAH less than the previous month. The minimum price in farms was 16.50 UAH/kg. The maximum price was 16.70 UAH/kg. The lower price range did not change, and the upper range decreased by 0.50 UAH.
Accordingly, the weighted average price of the three grades was 16.95 UAH/kg excluding VAT, which is 0.18 UAH less than the previous month.
Georgy Kukhaleyshvili notes that purchase prices have decreased for all grades, as the supply of raw milk in Ukraine exceeds demand, and warehouses are filled with exchange goods that are difficult to sell. Despite expectations, exports of dairy products to the EU under new quotas have not resumed after October 29, as European traders offer Ukrainian companies lower prices for finished products than last year amid a decline in exchange prices in the world. Butter prices continue to decline in Germany, the Netherlands, and Oceania. Butter exports to Kazakhstan, Moldova, and the South Caucasus have decreased due to an increase in the supply of goods from competitors.