milk,
milk price,
grades of milk
Restoration of EU quotas and tariffs puts pressure on purchase prices
Against the backdrop of a surplus of raw milk and finished products in Ukraine and the abolition of trade preferences by the EU and an increase in cheese imports, Ukraine is experiencing a decrease in purchase prices, which may continue in the second half of June, reports Georgy Kukhaleyshvili, an analyst of the Association of Milk Producers.
The average purchase price of Extra Grade milk as of June 6 was 16.00 UAH/kg excluding VAT, which is 0.12 UAH less than a month ago. The price range for this grade in farms varies from 15.50 to 16.50 UAH/kg excluding VAT and has not changed over the past month.
Higher Grade costs an average of 15.75 UAH/kg excluding VAT (-0.18 UAH). Prices for Higher Grade milk range from 15.30 to 16.20 UAH/kg excluding VAT. The lower and upper limits of the price range remained unchanged.
The average price for Grade I milk was 15.45 UAH/kg excluding VAT and decreased by 0.15 UAH compared to the first half of last month. The minimum price in farms was 15.00 UAH/kg. The maximum price was 15.60 UAH/kg. The lower limit of the price range remained unchanged, and the upper limit decreased by 0.20 UAH.
Accordingly, the weighted average price of the three grades was 15.75 UAH/kg excluding VAT, which is 0.05 UAH less compared to the results of the previous monitoring.
Georgy Kukhaleyshvili notes that in early June, the price decrease occurred in the middle of the price range, while the upper and lower limits of the price range for Еxtra and higher grades milk remained unchanged. However, in the second half of June, a revision of purchase prices by dairy processing enterprises is likely, regardless of the types of dairy products they produce. The driver of the decrease in prices for raw milk is the surplus not only of raw milk, but also of finished dairy products. If in May there was a balance on the dairy market, then as of now the supply of goods is greater than demand.