Ukrainian Dairy Market: Seasonal Price Growth for Raw Milk

 

End of February and beginning of March are marked by a slight growth in milk prices. Milk prices for the milk produced by the corporate sector increased at the average by UAH 0.2 per liter. The biggest increase is observed in the North and East in Ukraine – up to UAH 3.8 per liter, the highest price being UAH 3.85 per liter in Donetsk region.

The lowest price for raw milk is traditionally paid in the Crimea where local processing companies use their monopolistic position because of delivery problems to other regions. In the Crimea, the milk price is UAH 2.5 per liter for the corporate sector, and UAH 2.2 – 2.3 per liter for individual producers. Obviously, the milk prices for individual producers are the same as in the other regions of the country and big farms are deprived of income from milk sales.  However, corporate sector is able to organize milk deliveries to neighboring Kherson region where milk price is UAH 3.3 – 3.5 per liter.

09 March 2010

Corporate sector, UAH/L

Individual producers, UAH/L

North

3.8

2.2

Center

3.5

2.4

West

3.6

2.5

East

3.8

2.2

South

2.5

2.3

Ukraine

3.4

2.3

 

In general, milk price in Ukraine for the corporate sector rose up to 7% or UAH 0.2 per liter over the past two weeks. Price growth is explained by two main factors: seasonal milk production decline and global increase in skimmed milk powder.

 

milkua.info

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