Milk Production,
milk,
milk grades
Surplus milk puts pressure on purchase prices
Milk prices in Ukraine are falling in the spring under the influence of surplus milk and reduced demand for dairy products in the domestic market. However, purchase prices can resume growth in the event of an increase in the volume of exchange goods exports, — reports the analyst of the Association of Milk Producers, Georgy Kukhaleishvili.
The average purchase price of Extra Grade milk as of April 25 was 14.12 UAH/kg without VAT, which is 0.31 UAH less than a month ago. The price range for this grade in farms varies from 13.50 to 14.80 UAH/kg without VAT. The upper limit of the price range decreased by 0.50 UAH, and the lower limit decreased by 0.20 UAH for the last month.
Higher Grade costs 14.12 UAH/kg without VAT on average (-0.31 UAH). Prices for Higher Grade milk range from 13.50 to 14.80 UAH/kg without VAT. Compared to the monitoring results of the second half of March, the lower limit of the price range decreased by 0.50 UAH, and the upper limit decreased by 0.20 UAH.
The average price of Grade I milk was 13.42 UAH/kg without VAT, which is 0.11 UAH less compared to the price in the second half of March. The minimum price in farms was 12.75 UAH/kg, and the maximum price was 14.10 UAH/kg. Over the last month, the lower limit of the price range decreased by 0.25 UAH, and the upper limit fell by 0.18 UAH.
Accordingly, the weighted average price of three grades amounted to 13.89 UAH/kg without VAT, which is 0.24 UAH less than a month ago.
George Kukhaleishvili notes that in the second half of April there was a significant decrease in purchase prices due to the presence of surplus raw milk on the market. Every year in April-May in Ukraine, there is a significant increase in milk production due to increased lactation in cows. At the same time, the consumption of dairy products in the domestic market does not grow during the Lent. In 2024, it is predicted that the consumption of dairy products will decrease to 3.2 million tons, which is 9% less compared to the pre-war year 2021. Usually, during this period, milk processing enterprises reduce purchase prices and increase the production volumes of butter, dry milk and canned milk and fill warehouses with these products.