Purchase prices for milk from industrial enterprises in November showed seasonal growth. The main drivers of rising prices were processing companies that produce whole-milk products and require constant flow of fresh raw materials as well as large export-oriented cheeses.

The main pricing factors for today are:

  • seasonal decline in milk production;
  • increase in the cost of milk production;
  • growth of domestic consumption of fatty products, including dairy products. Gradual increase in sales during the holidays;
  • easing exports;
  • fluctuations of the dollar against the hryvnia.

The average price for extra grade milk in November was 10.16 UAH / kg inclusive of VAT, which is 2.21% higher than the October price. The range of prices ranged from 9.90 to 10.30 UAH / kg. At the same time, there were fixed even higher prices, but these were isolated cases.

The price of milk of lower grades grew more rapidly. This is explained by the fact that the maximum price for extra grade milk has already been paid by processors. And now, if necessary, it is easier for them to raise the price for milk of lower grade than to chase the extra grade. Thus, the higher grade for the month went up by 3.5% - to 9.37 UAH and the first for 6.7% - 9.06 UAH / kg.

Exchange rate fluctuations have raised the price for milk and in currency terms. In October, the price of Ukrainian milk in the ECM (fat 4%, protein 3.4%) was 28.36 euros / 100 kg, which is 5.8% higher than the price of September, but still 22% lower than the European.

Preventing lower prices in the global market and domestic opportunities, it is likely that in December, stabilization of purchasing prices for milk should be expected.

Thursday, 13 December 2018