Expert Opinion
Oleksandr Nazarko
Global Agro Finance

Summer camps for keeping cows in winter - advantages and disadvantages

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
Association of Milk Producers

Between proficit and deficit: an overview of the global dairy market

Despite the decrease in prices for milk raw materials in Europe, too much export supply for dairy products and weak demand on foreign markets, attractive…

Rising prices for dairy products: reasons for rising prices, forecasts. Volodymyr Andriіets

The topic of rising energy costs is currently one of the most sensitive, as it affects all sectors of economic activity.

The dairy industry is no exception, says analyst of the Association of Milk Producers Volodymyr Andriіets in a comment to the information portal Telegraf. The share of energy in the structure of its cost is 15%, and producers of dry, pasteurized or condensed dairy products are much more.

According to market operators, the price of gas for them will increase from October 11 to UAH 38 / m3 from October 1, so they will be forced to raise the selling prices of their products.

"The growth of prices for dairy products was observed throughout the current year, which was due to rising prices for raw milk and inflation in general. Since the beginning of the year, socially significant groups of dairy products have risen in price by an average of 7.7%, so there is resistance from retailers - they are reluctant to seriously review prices, as after such steps, sales fall. Nevertheless, producers have nowhere to retreat and they are required to increase prices in several stages by at least 10%", - said the expert.

Whether producers will be able to raise prices to the minimum level acceptable to them remains a question, as such a level of price growth at the beginning of the heating season and amid rising household spending on other goods and services will cause a significant drop in demand, especially since unofficial information from processors some of them are already experiencing difficulties with the sale of their products.

We emphasize that an effective mechanism in this situation is to reduce the VAT rate on socially important food products, especially dairy, throughout the chain - from field to shelf.

This step:

  • increase the purchasing power of citizens
  • make food more accessible to consumers
  • reduce the tax burden on food producers.

Volodymyr Andriіets told UA-Pershyі about the reasons for the rise in prices for dairy products and what to expect from prices by the end of next year:


Press service of the Association of Milk Producers