Ukraine: growth of milk production in agri enterprises and decline in rural households

In June, the raw milk market in Ukraine got balanced: prices for farmers’ raw milk ceased to decline. Prices for milk purchased from rural households were revised only at the beginning of the month. – INFAGRO

It is evident, that that the price of raw milk in this calendar year has reached the bottom.

At the beginning of 2018, in its monthly Milk Prices Report, Infagro made a forecast based on milk indexes and predicted the average milk price of agricultural producers for June at the level of 8.20-8.40 UAH/kg (0.27-0.28 EUR/kg). The current price is just 8.27 UAH/kg (0.27 EUR/kg) which is the average value of raw milk produced in agri enterprises today.

In general, the prices of milk got from agricultural enterprises are traditionally scattered, milk is purchased for the price in the range between 9.00 UAH/kg (0.29 EUR/kg) and 7.60 UAH/kg (0.25 EUR/kg) depending on quality, volume and region of production.

In mid June milk purchased from rural households is estimated at an average of 4.00 UAH/kg (0.13 EUR/kg).

The official milk production figures for five months of this year confirm the established trends: households are actively decreasing the number of cows pulling the overall figure of milk production down and thereby leveling out production growth in the category of agricultural enterprises, where the growth of production is considerable.

According to the State Statistics Service, since the beginning of the year, Ukraine produced 3.9 million tons of milk, which is 1.3% less than in the same period in 2017. The decrease in milk production in households is -3% against the previous year, the increase in agricultural enterprises is + 2.9%.

INFAGRO

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