Ukraine: milk purchase price getting lower

By the end of February Ukrainian dairies paid the following purchase prices for milk: quality milk from agricultural dairy enterprises 8,50-9,50 UAH/kg, milk from private households, on average 4,50-5,50 UAH/kg. But the main topic of debate was the forthcoming decrease in milk purchase prices scheduled for March 1 – INFAGRO

The decrease in the price of milk in the first days of spring is inevitable and this is clear not only for dairy processors, but also for dairy farmers who have their own problems that comprise the subsidies evaluation issue, cancellation of VAT refunds, the upcoming land reform, etc.

Current prices for raw milk do not allow processors to successfully market their products. Export prices for milk powder, butter and even cheese products do not cover even the production costs. Fresh dairy producers and cheese makers got tired of raising prices for their produce followed by proportional lost of sales.

Consumers demand has become also seriously deteriorated with the start of Lent. In general, there is no doubt about the decline in prices starting March 1. The challenge concerns only the rate of the purchase price decline. According to expert estimates, on average, there is expected the drop in prices by 30-50 cents a kilogram. Check it out in a few days.


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