First of all let me provide some information about the sources of data on the prices and specifics of the recalculation: prices for Ukraine, Belarus and Russia are the data of large agricultural enterprises; Poland and Lithuania – prices according to Eurostat. All the price trends are represented in terms of European fat and protein content excluding VAT.
As it was predicted, milk purchase prices in Europe (Poland, Lithuania) have declined, in Lithuania the decline was more active. Due to the changes in currency exchage rate, n terms of UAH the European prices, on the contrary, have increased.
Quite interesting seems the situation in Russia, where the average level of the purchase price has been declining for the third month in a row, and in euros it is already lower than it was in August 2017, that is, the minimum value of the previous year.
Attention can also be paid to the fact that the price of milk in Russia this February will probably be lower than in Poland. And this is a paradox. This situation is also reflected in the market of dairy commodities, where some Russian products, for example, butter, WMP and whey, can already compete in foreign markets.
The situation with the purchase price for milk for the same fat and protein content, as well as the same currency, in Belarus and Ukraine (farm prices) is similar.