As milk market analysts predicted, in July, the farmgate milk prices moved up. In the first days of July only targeted changes were observed but from the middle of the month there has been a massive increase in the price of raw milk. – INFAGRO

Compared to June, the price of milk from farms in July increased to an average of UAH 13.9/kg, excluding VAT (+22% by July 2023). The average price of milk produced in household farms increased to UAH 8.6/kg in June (+14% by July 2023). At the end of the month, the range of procurement prices for milk from agricultural enterprises mostly amounted to UAH 12.8-14.6/kg without VAT. The cost of milk produced in households was mainly in the range of UAH 8.0-9.5/kg without VAT.

The heat caused both direct and indirect damage to the industry, worsening the long-term forecast for raw milk production. Heat strokes reduced the milk yield by 20-25% compared to the May peaks. Animals’ recovery can last from several months to six months. The impact on the forage base will be even longer-lasting, as the drought not only contributed to the growth of marketable concentrates but also reduced the quality of new crop staples.

The total amount of milk produced by all categories of producers for the first half of the year amounted to 3.5 million tons, which is 2.2% lower than in the same period of 2023. Milk production by agricultural enterprises in the first half of the year is 5.7% higher than in the same period last year (1.5 million tons).

INFAGRO