Procurement prices for milk continue to fall, despite the improvement in the world market.

The average price for extra milk in May was 8.89 UAH / kg, which is 2.5% lower than the price of April this year and 12.8% lower than the price of May last year.

At the same time, at the end of the month the most common offer was 8.50 per kilogram of extra milk at a volume of 10 tons.

For the higher class, the processors paid an average of 8.51 UAH / kg, which is 5.5% lower than the price of April, and for the first class - UAH 8.19 (-2.5%).

Global trends, moreover, are more than positive. The price index for milk and dairy products by IFCN in April this year was 36.1 euros / 100 kg, which is 2.8% higher than in March, and 4% in the corresponding period of 2017.

In addition, this is the highest price index in April since 2015.

Data from the Food and Agriculture Organization of FAO also confirm the positive dynamics of the world market.

The average value of the price index for dairy products increase for the third month in a row and in April totaled 204.1 points, which is 6.7 points (3.4%) higher than March.

Thus, the index value was more than 11% higher than the level of April last year.

We are currently running a script that we described at the beginning of the year: the growth of dairy imports from the major importers and oil fuel dependent countries (against the backdrop of rising oil prices) and lower than it was expected milk production rates contribute to rising prices for dairy products on the world stage.

At the same time, the fact that the trends of the domestic and world markets are fundamentally divergent, says the rise in milk prices in Ukraine can be quite sharp.

As of May 1, 2018, there are 2 million 32.4 thousand cows in Ukraine, which is 3.8% less than on May 1, 2017.

In January-April 2018, Ukraine produced 2.9 million tons of all kinds of milk, which is by 1.1% less than in 2017.