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Monitoring of milk prices: the positive trend persists despite energy obstacles

In the second half of October, purchase prices for milk from industrial farms continued their upward trend.

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

Price support was created by demand from processors, in particular cheese makers, and a seasonal reduction in milk production.

As of October 25, the average purchase price for extra grade milk was UAH 11.80/kg excluding VAT, which is 20 kopecks higher. above the price at the beginning of the month. The price range, depending on the batch, ranged from UAH 11 to 12.25/kg.

The higher grade milk rose in price by 29 kopecks. — up to UAH 10.77/kg. The price corridor was within UAH 9.80-11.50/kg.

The first grade milk rose in price by 15 kopecks. — up to UAH 10.28/kg. The price of such milk ranged from UAH 9.18 to UAH 10.80/kg.

The weighted average price of three varieties rose by 22 kopecks. — up to UAH 10.95/kg.

The main problem in the market today and in the short-term perspective is failures in the operation of electrical systems due to constant terror by russian invaders of Ukrainian energy facilities. Emergency and scheduled power outages are painful for both dairy farms and dairies.

The most energy-intensive processes on a dairy farm are milking, the operation of milk cooling tanks, feed production - the minimum consumption of e-energy by a dairy farm per 1,000 cows exceeds 1 MW, so the use of diesel or gasoline generators increases the share of electricity costs in the cost of milk production according to the calculations of farms in 5-6 times. For dairies, the requirement to halve electricity consumption threatens to reduce the production of finished products, which threatens to unbalance the market.

However, today the participants of the dairy chain are relatively successfully coping with this new challenge, although the additional costs will definitely have consequences for the increase in the cost of production of both raw milk and finished dairy products.

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

Source: AMР survey

Press service of the Association of Milk Producers