Ukraine: 2022 will be a difficult year for dairy industry

Skyrocketing of gas prices in December forced milk processors to reconsider their plans: some dairies have decided to suspend production in early January, and some have offered their suppliers to cut raw milk prices.- INFAGRO

The situation is still very uncertain, but one thing is definitely clear: next year will be very difficult for the dairy processing industry. Such high risks of shutdowns, bankruptcies, mergers and acquisitions have not been observed in the last fifteen years.

By the results of the year, the volume of milk production by agricultural enterprises will be at the level of 2020. The number of cows in this category for December 1 increased slightly compared to December of the previous year.

Against the background of the restoration of profitability of raw milk production in the fourth quarter, the prospects for supply of quality milk are not bad. However, the decline in milk production in households will cut the opportunities of both the domestic market and dairy exports.

The prospects for imports will depend on the price of dairy products and degree of decline in consumer demand in the new season.

Purchase prices for raw milk in December remained stable, but on the secondary market the prices have already begun to sharply decline.


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