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Global Agro Finance

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Monitoring of milk prices: stabilization should be expected in December

At the end of the year, the raw milk market seems to be entering a "quiet period". The intensification of foreign trade in the summer and early autumn made it possible to visually increase milk prices on the domestic market. However, compared to European ones, they still remain a third lower.

However, since the beginning of November, due to the deterioration of the global situation and interruptions in electricity supply, the price trend for extra grade milk began to slow down, and in the second half it practically stopped. The prices of milk of the highest and first grades still had a tightening effect.

The analyst of the Association of Milk Producers Yana Linetska reports.

Thus, as of November 23, the average purchase price for extra grade milk amounted to UAH 12.14/kg excluding VAT, which is only 0.6% higher than the price of the first decade of the month. The increase in the same period of October was about 2.5%. The price range, depending on the size of the batch, ranged from UAH 11.75 to 12.50/kg.

The higher grade increased by 1.27% compared to the beginning of November — up to UAH 11.95/kg. The price corridor was within 11.75-12.30 hryvnias/kg.

The first grade increased in price by 1.7% to UAH 11.59/kg. The price of such milk ranged from UAH 11.27 to 11.90/kg.

The weighted average price of the three varieties increased by 1.1% to UAH 11.89/kg.

Energy terrorism of unhealthy neighbors remains the main problem of the dairy industry and the economy in general. This is a rather significant restraining factor in the work of both dairy farms and processing plants. However, despite this, the demand for milk currently remains active. There is no urgent need for it, but free parties are not foreseen either. That is why, in December, we should expect a lateral trend in purchase prices for milk and stabilization in terms of varieties.

Dynamics of purchase prices for milk, UAH/kg (without VAT)


Press service of the Association of Milk Producers