Prices for milk are decreasing in Ukraine despite global trends

Prices for milk are decreasing in Ukraine despite the fact that the opposite is true for the rest of the world. It was reported by the press service of the Association of Milk Producers, writes “Agro-Center”.

“Despite positive price trends at the world market, milk prices in Ukraine continue to decrease. The greatest decrease is in prices for high-quality milk,”

said Jan Muzychenko, the analyst of the Association of Milk Producers.

In the first half of April, a kilogram of milk cost 9.69 UAH/kg, including VAT, which is 11 kopeks lower than the price during the second half of March. In general, prices fluctuated within the range of 9.90-9.40 UAH/kg. High-quality milk was on average sold at 9.36 UAH/kg, which is by 6 kopecks cheaper, and prices for not high-quality milk decreased by 7 kopecks to 8.98 UAH/kg.

There are several reasons for this. First of all, export prices for the main currency-forming categories, butter and milk powder, are low. For example, butter sales declined by 35%, and by 38.4% in monetary terms. The average price of a kilogram of butter for export was 4.1 dollars/kg. Sales of cheese product did not recover. In the first quarter, total revenues from sales of dairy products to foreign markets decreased by 19%.

“The seasonal factor makes the situation worse. In March, we have a traditional jump in milk production at the expense of private farms – + 32%, compared to March,”

said the analyst.

World prices for milk have been rising since December last year. This is confirmed by all the world’s analytical networks. In Ukraine, there is an opposite trend. The bigger this gap, the more significant price growth we will have in the summer months.