Ukraine: Milk prices are growing quickly

Milk prices has grown by UAH 0.15-0.20 from November.

The growth was caused by exporters who do not had enough milk for execution of contracts. They became more active in milk purchases, which led to growth of prices all over the country. Prices for commodity dairy products strengthened on global markets, the UAH weakened, therefore it became favourably to export the products.

At the same time, milk deliveries for processing were essentially reduced this year, therefore milk price will increase further.

Milk prices still will grow by UAH 0.15-0.20 from November. Exporters (producers of butter, milk powder and cheese) are ready to raise the prices further with regard to global growth and dynamics of exchange rate, but attitude of producers of fresh milk products will depend on possibility of price growth on domestic market and on reaction of buyers.

Therefore it may happen that the prices will grow at the beginning of November due to tight competition of processors, but they will weaken by the end of the year because of low business profitability.

infagro.com.ua

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