milk,
milk prices,
grades of milk
Milk becomes cheaper under pressure from world prices
The decline in world prices for exchange-traded goods on export markets, the increase in the supply of dairy products in warehouses, and weak demand from dairy processing enterprises are contributing to the decline in prices for raw milk, reports Georgy Kukhaleyshvili, an analyst of the Association of Milk Producers.
The average purchase price of Extra Grade milk as of October 22 was 17.25 UAH/kg excluding VAT, which is 0.20 UAH less than the previous month. The price range for this grade in farms varies from 16.90 to 18.00 UAH/kg excluding VAT.
Higher Grade costs an average of 17.00 UAH/kg excluding VAT, which is 0.15 UAH less than the previous month. Prices for Higher Grade milk range from 16.80 to 17.10 UAH/kg excluding VAT.
The average price for Grade I milk was 16.65 UAH/kg excluding VAT, down 0.15 UAH from the previous month. The minimum farm price was 16.50 UAH/kg and remained unchanged over the past month. The maximum price was 17.00 UAH/kg.
Accordingly, the weighted average price of the three grades was 17.17 UAH/kg excluding VAT, which is 0.18 UAH less than the previous month.
Georgy Kukhaleyshvili notes that the decrease in prices for raw milk in Ukraine is due to low demand from dairy processing enterprises due to reduced sales of exchange-traded goods, due to the unprofitability of the milk powder/butter pair and the decrease in world prices for butter. The decrease in prices for milk and dairy products is currently a global trend, which is not a typical situation for the end of the year.