Expert Opinion
Oleksandr Nazarko
CEO
Global Agro Finance

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Many farmers keep animals in summer camps, and many do so in winter. Exercise for cows. Fresh air. Reduced care costs? Is it really that…

Gеorgiі Kukhaіleshvili
analyst
Association of Milk Producers

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The trend of rising milk prices is fading

According to the new price adjustments, there is a slight increase in average prices, which is more inert after the last wave of growth and mainly for those who last received prices below the market average.

This was reported by analyst of the Association of Milk Producers Volodymyr Andriіets.

The growth of the weighted average price amounted to 13 kopecks.  up to UAH 11.6 / kg.  Extra rose on average to UAH 12.1 / kg (+13 kopecks), higher to UAH 11.65 / kg (+13 kopecks), the first to UAH 11.05 / kg (+12 kopecks).

Prices for medium and large batches of extra milk by region are set within the following limits: north and center 11.7-12.4 UAH / kg, south 11.7-12.4, east 11.6-12.4 UAH / kg, measure 11.6-12.3 UAH / kg.

" We can assume that the new price levels have been reached this year. And even higher than expected, as expectations were more modest due to lower demand after the first lockdown. However, the shortage of milk exacerbated the seasonal upward movement of prices, which is an internal factor. However, an important factor was also played by the external factor - a significant increase in world prices for the main components of the diet, which led to a significant seasonal increase in European producers," - said Volodymyr Andriiets.

At present, the average European price has already recovered to last year's levels, after a significant slump in the summer months.  The price of Ukrainian raw materials in terms of energy-adjusted milk (ECM) as of November is 32.66 euros / 100 kg (excluding VAT) and is slightly lower than our main exporters of dairy products in Poland - 33.42 euros / 100 kg and Germany - 34.57 euros / 100 kg.

"These conditions add more competitive attractiveness to Ukrainian dairy products than imported ones, which can be an additional factor restraining the flow of European imports," - the expert said.