Milk prices declined slightly in January. This is due to sluggish export trade. Export-oriented processors and traders are still "rolling" and are working to conclude new contracts. As a result, the average price for extra-grade milk in January was 10.11 UAH/kg, which is 4 kopecks lower than the price of December. Higher grade cost UAH 9.65, which is 5 kopecks cheaper than the previous month, and the first grade cost UAH 9.25 (+5 kopecks).

However, based on world trends in February, this trend will change to stabilization. The first GDT auctions in February showed a 6.7% increase in the Dairy Price Index. The average price was 3265 dollars/ton. This is the fifth growth in succession. The main pricing factors are nowadays the decline in milk production in the world and the sale of interim stocks of skimmed milk powder (SMP). Even the record figures for milk production in New Zealand do not hinder the growth of prices.

The largest jump in prices was noted for casein - + 10.9% - 5596 dollars/ton. Dairy fat grew by 5.8%, to 5579 dollars, and oil grew by 4.2% (4445 dollars/ton). Cheddar grew by 1.4% - 3565 dollars.

In addition, SMP has risen in price by 3.9% - 2534 dollars, and whole milk powder (WMP) - by  8,4% - 3027 dollars. Cheaper only the oil - minus 3.1% - 3158 dollars/ton.

Such price changes will have an impact on pricing in the Ukrainian dairy market. Statistics have already summed up the production of dairy products. Last year, the production of whole milk products, hard cheese and fused cheese, whole milk powder and casein increased. The latter two grew due to attractive prices on the world market. At the same time, the release of cheese product has decreased due to the lack of gray export schemes and dry milk collection, due to low world prices.

According to the results of 2018, milk processing enterprises of Ukraine received 4.18 million tons of milk of base fat, which is 3.9% less than the corresponding period of last year.

The quality of milk purchased in industrial farms has improved. Especially on extra-grade.

The share of extra-milk in the general structure increased from 16.4% to 21.6% (586.2 thousand tons), the higher-grade - from 36.7% to 38.1% (1.04 million tons). The share of the first grade continues to decline -32.9% versus 37.9% versus 42%.

As far as households are concerned, the largest share continues to be in the second grade. Although its share decreased from 87.2% to 83% (903.6 thousand tons). The share of the first grade grew from 8.9% to 12.5% ​​(135.5 ths. tons). This dynamics will change in 2019 - the share of the second grade will be reduced, due to the same legislative requirements.

Tuesday, 19 February 2019