By KYIV. Oct 25 (Interfax-Ukraine) – Raw milk in Ukraine has risen in price by an average of UAH 0.46 over the past month due to its limited supply in the domestic market and active demand for dairy products from consumers, analyst at the Association of Milk Producers Georgy Kukhaleishvili said.
According to him, the average purchase price of extra-grade milk as of October 24 was UAH 13.07/kg excluding VAT, which is UAH 0.54 more than according to the results of monitoring carried out in the second half of September. The highest grade costs on average UAH 12.68/kg excluding VAT (UAH 0.36 more), the first grade costs UAH 11.90/kg excluding VAT (UAH 0.41 more).
Accordingly, the weighted average price of the three varieties is UAH 12.87/kg excluding VAT and has increased by UAH 0.46 over the last month.
According to Kukhaleishvili, one of the reasons for the increase in purchase prices for raw milk in Ukraine is the limitation of its supply for processing enterprises amid increased consumer demand.
“The Ukrainian dairy sector is likely experiencing the effects of a heatwave in July-August. Cow productivity has been reduced by the high temperatures, and processing plants are likely to have produced fewer dairy products than usual ahead of the fall-winter sales season. Consequently, the demand for raw materials from enterprises remains active,” the analyst explained.
He added that the number of milk consumers in Ukraine has increased because some Ukrainians returned from abroad with the beginning of the school year. They did not have to save on dairy products in order to buy other goods, in particular, seasonal vegetables, which became cheaper.
The business association indicated that an increase in purchasing prices in Ukraine will lead to an increase in prices for dairy products. In the future, competition with European imports may restrain price growth. However, purchase prices for raw materials in Ukraine are approaching European levels. If the situation does not change, dairy products from European producers will be able to compete with domestically produced products on the shelves of Ukrainian supermarkets.
