Milk purchase prices,
milk,
milk prices
The reinstatement of EU tariffs and quotas puts pressure on purchase prices
During May, raw milk prices in Ukraine remained stable, despite an oversupply that was offset by exports of finished products to the EU. However, the likely reinstatement of quotas and duties by the European Commission in June, the growth of cheese imports to Ukraine, and the risk of foot-and-mouth disease spread pose a threat to price stability in the domestic market, reports Georgy Kukhaleyshvili, an analyst of the Association of Milk Producers.
The average purchase price of Extra Grade milk as of May 22 was 16.12 UAH/kg excluding VAT, which is 0.03 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. The lower and upper limits of the price range have not changed.
Higher Grade costs an average of 15.93 UAH/kg excluding VAT (-0.02 UAH). Prices for Higher Grade milk range from 15.30 to 16.20 UAH/kg excluding VAT. Based on the monitoring results of the second half of last month, the lower and upper limits of the price range have not changed.
The average price for Grade I milk was 15.60 UAH/kg excluding VAT and remained unchanged compared to the second half of the previous month. The minimum price in farms was 15.00 UAH/kg and did not change over the last month. The maximum price was 15.80 UAH/kg and remained unchanged.
Accordingly, the weighted average price of the three grades was 15.97 UAH/kg excluding VAT, which is 0.03 UAH less compared to the previous period.
Georgy Kukhaleyshvili notes that prices for raw milk have hardly changed over the past month, as the situation on the Ukrainian dairy market remained stable in May. There is a certain surplus of raw milk on the market. The demand for exchange-traded goods was fully covered by the existing supply. It is likely that dairy processing enterprises were ready to sell even more dairy products due to the uncertainty of the situation around the autonomous trade arrangements (ATAs) for milk and dairy products from Ukraine, which from 2022 allowed domestic processing enterprises to supply their products to the EU without quotas and duties. European traders bought Ukrainian dairy products in the quantity they needed, taking advantage of the fact that butter and skimmed milk powder in Ukraine are cheaper than in Europe.
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