The rise in milk prices in Ukraine is becoming increasingly relevant. The weighted average purchase price has slightly jumped and now stands at 16.62 UAH/kg without VAT. This data was provided by the Milk Producers Association, which is highly interested in these matters.
According to analyst Georgiy Kukhaleyshvili from AVM, the high demand from processors who want to actively export dairy products to the EU, while quotas have not been exhausted, was the reason for the price increase at the beginning of August.
Price dynamics for individual types of milk
In this situation, prices for extra grade milk have jumped the most - they reached 16.80 UAH/kg without VAT, which is 66 kopecks higher than in July. The highest grade costs 16.60 UAH/kg, the first grade - 16.20 UAH/kg, with an increase of 75 kopecks in these cases.
The Association believes that raw milk will not become cheaper soon. This is due to the fact that processors have nearly exhausted their supplies and will now have to gradually replenish them, including through exchange contracts.
Milk price forecast
Industry representatives hope that the situation will stabilize after September if Ukraine concludes a new trade agreement with the EU. Then Ukrainian producers will be able to supply dairy products more widely to European markets.
However, according to AVM, sharp jumps in prices are also not expected in September, as the initial export supplies will come from warehouses. According to processors' forecasts, the average price for milk in September will be 16.70 UAH/kg, and by October it may increase to 17.10 UAH/kg.
Ukrainian milk prices have begun to rise due to high demand for the export of dairy products to the European Union, leading to an increase in prices for different types of milk. It is expected that the situation may stabilize after the conclusion of a new trade agreement with the EU, allowing Ukrainian producers to more actively supply goods to European markets.