According to official figures, in 2019, 3.8 million tons of milk were processed in Ukraine, which is 9.1% less than in 2018. 2.6 million tons were bought from dairy farms (-4.0% from last year)  ), households provided 0.85 million tons (-21.8%).  – INFAGRO

It is difficult to analyze the figures provided by official statistics, especially by categories of milk suppliers, but official dynamics is valid – in Ukraine milk intake by dairies actually decreased by 8-9%, including falling supplies from households.  According to Infagro estimates, in 2019 the volume of milk supply for processing amounted about 3.5 million tons in physical terms, and in terms of basic indicators of fat and protein (3.4% and 3.0%) it was 3.7 million tons.

It is interesting that in 2019, similar to EU, characteristics of milk supplied by agricultural enterprises significantly increased by fat and protein indicators. According to the results shown last year, fat content increased by 0.05% to 3.66%, protein by 0.02%, to 3.13%.  Definitely, the reasons were both good weather throughout 2019 and in reduction of the low-productive livestock, which allowed to raise the average indicators for the category.

Despite attempts of negotiating reduction in milk purchase prices, the price ranges for the country in mid-February remain unchanged.  For agricultural producers it amounts 9.50-11.20 UAH/kg including VAT. Milk produced at households is mainly sold at prices of 6.00-6.50 UAH/kg, without VAT.

Negotiations on milk purchase price reduction will continue and reviews of spot sales will also be on the market in the second half of the month.  In the meantime, dairy farmers are now dictating their terms and conditions in the country’s dairy industry.  This will last until competition in the raw milk market will have grown.  Changes may occur either due to a noticeable increase in milk production, or due to an increase in imports of finished dairy products to such a level that Ukrainian dairy plants will no longer need farmers’ milk.

INFAGRO