Raw milk prices are unreasonably high in Ukraine
As it was expected, the beginning of March was marked by mass rise of milk prices in Ukraine.
The increase which has begun in Cherkassy, Poltava, Vinnytsia regions in the end of February reached national level in the beginning of spring.
At the same time, not all milk is in demand now, unlike it was a month before. Strengthening of hryvnia cooled the ardor of exporters and warm weather promises a faster seasonal increase of milk yields.
According to February statistics, milk production decreased by 2.7% in comparison with the same period of last year. Essential decrease of milk production in households (-5.7%) was the reason. Agricultural enterprises showed positive results: production was increased by 4%.
Revision of milk prices helped to calm farmers. Prices for milk from farms have increased 10-20% for two weeks, and in the middle of March they are already at UAH 4.80-5.80/kg. High quality milk from large farms is bought even at UAH 6.00/kg.
Prices for milk from households are also increasing. It is valued on average at UAH 3.00-3.30/kg. Range of prices is rather wide, depending on region.
It is worth mentioning in connection with increase of petrol prices and other expenses, purchases of milk from households become more expensive therefore processors try to switch the attention to farms. As a result, decline of livestock in households is more noticeable (-7.1%).