Despite seasonal decrease of milk production and its shortage in first half of August, the prices for it have stabilized on Ukrainian market.

Decline of prices for milk powder on world market had an influence. Export prices for milk powder fell quickly and considerably for a few weeks, and despite weakening of the UAH, processing into milk powder became unprofitable.

On the other hand, producers of cheese product continued to trade actively therefore surplus of raw milk is not observed.

With regard to mentioned above factors, prices for milk do not increase anymore, but do not fall either.

Even now there are local “wars” for raw milk in some regions, but in general the situation is stable in the country. Demand for raw milk is weakened.

Spot price is a little declined and on average it is at the same level as price for milk from agricultural enterprises. Milk of good quality is valued at UAH 4.00-4.50/kg.

It is difficult to forecast development of raw milk market now, as situation changes very quickly.

Source: infagro.com.ua