milk,
milk prices,
demand
Milk prices under pressure from weak demand, blackouts and frost
In the second half of January, prices for raw milk in Ukraine decreased across all grades due to a surplus of dairy products and a reduction in exports despite the increase in the cost of production at the dairy farms. The situation is significantly complicated by the energy crisis, which disrupts the work of farms and dairy plants, so the industry needs anti-crisis solutions, state support, and ensuring stable energy supplies, — reports Georgy Kuhiashvili, an analyst of the Association of Milk Producers.
The average purchase price of Extra Grade milk as of January 20 was 14.50 UAH/kg excluding VAT, which is 0.80 UAH less than the previous month. The price range for this grade in farms varies from 13.50 to 14.90 UAH/kg excluding VAT. The lower limit of the price range decreased by 1.30 UAH, and the upper limit decreased by 1.10 UAH.
Higher Grade costs an average of 14.30 UAH/kg excluding VAT, which is 0.90 UAH less than the previous month. Prices for Higher Grade milk range from 13.50 to 14.50 UAH/kg excluding VAT. The lower limit of the price range decreased by 1.20 UAH, and the upper limit decreased by 1.30 UAH.
The average price for Grade I milk was 13.90 UAH/kg excluding VAT and decreased by 0.90 UAH compared to the previous month. The minimum price in farms was 13.00 UAH/kg, which is 1.00 UAH less compared to the previous month. The maximum price was 14.00 UAH/kg and decreased by 1.00 UAH compared to the previous month.
Accordingly, the weighted average price of the three grades was 14.35 UAH/kg excluding VAT, which is 0.85 UAH less compared to the previous month.
Georgy Kuhiashvili notes that in the second half of January, there was another decrease in prices for raw milk of all grades. Milk from the population is also becoming cheaper. Compared to January 2025, the average price for milk decreased by 20%. An unexpected increase in milk yield in Europe, the USA, Oceania and South America in the second half of 2025 and the appearance of an excess supply of dairy products on the world market led to a collapse in export prices for exchange-traded goods, including butter and powdered milk, which in turn affected the reduction in exports and a decrease in prices for raw milk. Ukrainian dairy processing enterprises increased the production of butter, condensed milk and powdered milk, which is problematic to sell. Milk and butter production remains low-profit. The situation presents a serious challenge for the dairy industry, as current purchase prices do not match the increase in production costs at the dairy farms.