Expert Opinion
Volodymyr Andriets
analyst Association of Milk Producers
Association of Milk Producers

The World Milk Crisis 2020 - what are the scenarios for future events?

The World Milk Crisis 2020 - what are the scenarios for future events? Volodymyr Andriets analyst Association of Milk Producers During the global quarantine analytical…

Milk prices are rising, but the trend frail

The rising price of raw milk materials is supported, albeit slowly due to the seasonality. Recent monitoring has shown a slight increase in prices in all grades, and most of all again on the first. While extra grade rose by 6 kopecks, to 10.16 UAH/kg, higher grade by 3 kopecks, to 9.73 UAH/kg, and the first one on 8 kopecks, to 9.17 UAH/kg. Weighted average price of the three grades added 6 kopecks and amounts to 9.69 UAH/kg.

Has changed and the range of fluctuations in the price of extra grade in the regions. In the West of 9.80-10.0 UAH./kg; the Eastern and 9.9 to 10.2 UAH./kg; North - 9.90-10.5 UAH./kg., South - 9.90-10.5 UAH./kg, Central - 9.90-10.40 UAH./kg.

Despite the fall in milk production on the background of the end of the season milk, the seasonal trend of growth looks quite sluggish. The reason is falling demand, which was influenced by quarantine restrictions, which is not so quickly restored. Additional pressure has the growing imports of dairy products, which in terms of falling purchasing power of citizens, not only keeps its market share, but is growing in the first half of the year.

The situation with the recovery in the near future is unlikely to change significantly, but rising prices of raw materials will be observed within the seasonal trend, which may not be as rapid as last year.

Source: AMP Analytical Department