milk prices,
demand
Monitoring of raw milk prices: recovery of demand and expectations of intensified exports
Purchase prices for milk continued to rise amid a gradual recovery in domestic demand in mid-May. However, along with positive hopes for a recovery in raw milk prices and lower feed costs due to the domestic situation, dairy farms are concerned that in the midst of «green harvest» (haylage and silage, which account for 50% of the cost structure) faced a shortage of fuel and rising prices for it twice or three times.
According to the monitoring data from May 16, the purchase prices for Extra Grade milk in mid-May reached 10.53 UAH/kg excluding VAT, which is 0.13 UAH higher than the price fixed in the first days of the month. At the same time, the spread of prices deepened even more — from 9.50 to 11.1 UAH.
Higher Grade cost 9.96 UAH/kg on average (+0.02 UAH before the previous survey), and Grade I cost 9.89 UAH (+0.07 UAH).
The weighted average price of three grades was 0.08 UAH higher — 10.13 UAH/kg (excluding VAT).
This increase in price is largely due to the gradual recovery of domestic demand. More and more people are returning to big cities, and catering establishments, cafes and shops continue to reopen. However, processors note a significant decline in domestic demand and the impossibility of exporting exchange-traded products. Stockpiles of milk powder and butter accumulated during the first months of the war put pressure on the capacity of processing plants. Despite the SMPU's estimates that 2 million tons of unused milk processing capacity in Ukraine will be enough to process, the farms of the first-occupied districts are already facing cases where plants reduce processing and report restrictions on cooperation.
millkUa.Info