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 raw milk reached the top of consolidation

Rising raw milk prices seem to have reached the top of consolidation. The latest monitoring showed the finishing movement of the price-pulling effect.

This was reported by analyst of the Association of Milk Producers Vоlоdуmуr Andriіets.

Under these conditions, the weighted average price of three grades added 4 kopecks and amounted to 10.74 UAH / kg without VAT. With:

  • extra grade on average went up by 3 kopecks - UAH 10.95 / kg,
  • higher by 6 kopecks - 10.82 UAH / kg,
  • first for 2 kopecks - 10.46 UAH / kg without VAT.

Average prices for large and medium batches of extra grade milk by region have not changed: north - 11.08 UAH / kg, center - 11.12 UAH / kg, south - 11.2 UAH / kg, east - 11.0 UAH / kg, measure - 11.1 UAH / kg without VAT.

The expert notes that, despite the shortage of raw materials, the upward price trend has met strong resistance from a number of opposing factors that determine the significant pressure on the price, namely low profitability of finished dairy products in general, rising energy tariffs for industrial production, a sharp decline in the purchasing power of the population, which causes a drop in demand for products.

According to preliminary forecasts, despite the growth of prices for socially important dairy products in the networks, which has already exceeded 7% in nine months, by the end of the year they will continue to increase. This will certainly further reduce consumer opportunities and create problems for producers at the stages of wholesale sales and call into question the further conduct of their business.

"Currently, there is no easy way out of the situation, as it requires a comprehensive solution with the participation of the state. Areas of support that will contribute to the modernization of the production infrastructure of the industry as a whole are clearly needed, but their effect will be determined in the medium term. Another area, the effect of which will be much faster, is to stimulate demand by improving the economic affordability of key agricultural products by reducing VAT on the entire production chain up to the "shelf". It is this mechanism that can be quite efficient and effective in conditions of complex consumer solvency, especially when the issue of basic human needs is already on the agenda”, -Volodymyr Andriіets emphasizes.

Press service of the Association of Milk Producers