Expert Opinion
Volodymyr Andriіets
analyst
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…

The trend of rising milk prices continues

The upward trend in milk prices continues, although the growth rate has slowed down as much as possible, said Volodymyr Andriіets, an analyst at the Association of Milk Producers.

The last monitoring showed a slight increase in the weighted average price by 5 kopecks to UAH 10.71 / kg without VAT. At the same time, the extra grade increased in price by 6 kopecks on average. - 10.92 UAH / kg, higher by 5 kopecks. - 10.76 UAH / kg, the first for 4 kopecks. - 10.44 UAH / kg without VAT. Average prices for large and medium batches of extra milk by region:

  • north - UAH 11.08 / kg,
  • center - UAH 11.12 / kg,
  • south - UAH 11.2 / kg,
  • east - UAH 11.0 / kg ,
  • measure - UAH 11.1 / kg.

Volodymyr Andriіets notes that further increase in raw milk prices is still unlikely. This is due to the difficult economic situation of processors, especially against the background of rising gas tariffs for industrial enterprises. Under such conditions, processing companies are forced to raise selling prices for networks. Rising domestic prices on the shelves, which were already recorded in September, will inevitably lead to a fall in demand for it, otherwise it may be replaced by imported, the volume of which continues to grow rapidly this year.


«The situation is beginning to take the shape of a vicious circle, from which not all market participants can emerge by spring. The industry needs attention from the state, strengthening state support and steps that could reduce production costs through mechanisms to reduce the tax burden on all participants, including consumers».


Press service of the Association of Milk Producers