Milk is rising in price amid a seasonal decline in production

Молоко растет в цене на фоне сезонного спада производства

The cost of milk raw materials is growing rapidly due to the seasonal decline in production in Ukraine. This was told in the press service of the Association of milk producers.

“The trend is supported by the strong growth of prices on large quantities of milk of the highest quality – “extra”, — say the representatives of the Association.

According to them, the average price of this grade was 10.3 UAH/kg, that is, rose by 14 cents. “Extra” class milk rose by 12 cents to 9.82 UAH. First grade went up by 10 cents — 9,19 UAH./kg.

They also added that the range of price fluctuations extra has changed by region:

  • West ― 9,90-10,4 UAH/kg;

  • East ― 9,9-10,40 UAH/kg;

  • North ― 10,0-10,5 UAH/kg,

  • South ― 9,90-10.5 UAH/kg

  • Center ― 10,0-10, 50 UAH/kg.

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“Though with some delay, but prices, nevertheless, intensified their upward movement. Signs are given a seasonal decline in production on the background of summer at 3.7%. Delayed start of growth this year due to falling demand for reasons known to all, but at the moment, already celebrated its revival, especially in the segment HoReCa”, — noted in the profile of the Association.

The timing of full recovery is still unknown, the report said, forecasting prices in the current year will be too complicated.

We will remind, for January-June 2020, milk production in Ukraine decreased by 3.7% compared to the same period of 2019 to 4.59 million tons.

In January-June 2020, Ukraine produced 4.59 million tons of milk (3.7% less than in the same period of 2019). Including agricultural enterprises produced 1.39 million tonnes of milk (0.7% less), the economy of the population of 3.20 million tons (4.9% less).