Ukrainian Milk Prices Plummet: Industry Association Points to Key Factors

Ukrainian Milk Prices See Sharp Decline

According to ХВИЛЯ: Purchasing prices for raw milk in Ukraine have fallen significantly as of January 20. This drop has affected all quality grades of milk and is attributed to a market surplus and a reduction in exports. The Milk Producers Association notes that despite rising production costs, the market has been negatively impacted by the ongoing energy crisis, which is disrupting the stable operation of both farms and processing plants. This situation is particularly challenging for an agricultural sector that is a significant part of the national economy.

Current Raw Milk Price Status

As of January 20, the average price for raw milk stood at 14.35 UAH per kg (excluding VAT), a decrease of 85 kopiykas compared to the previous month. The price reduction applied across all quality grades:

• 'Extra' grade fell to 14.50 UAH per kg (a drop of 80 kopiykas).
• 'Higher' grade decreased to 14.30 UAH per kg (a drop of 90 kopiykas).
• 'First' grade dropped to 13.90 UAH per kg (also a decrease of 90 kopiykas).

The price ranges for these grades are as follows:

• For 'Extra' grade – from 13.50 to 14.90 UAH per kg.
• For 'Higher' grade – from 13.50 to 14.50 UAH per kg.
• For 'First' grade, the minimum price is 13.00 UAH per kg.

Giorgi Kukhiachvili, a representative of the association, emphasized that the price drop occurred in the second half of January due to an oversupply of dairy products and reduced exports, even as production costs have risen. This development is causing concern among milk producers who are already grappling with difficulties stemming from the energy crisis.

The falling prices for raw milk could have serious consequences for Ukraine's dairy industry. On one hand, it may lead to reduced income for farmers who are already facing higher production costs because of the energy crisis. On the other hand, consumers could benefit from lower prices for dairy products. However, a prolonged price decline without market stabilization threatens to reduce production and create further problems for the sector.