milk, dairy market, milk prices, growing of export
Ukrainian dairy production index is 30% higher than year ago

 

Andriy Yarmak, economist of investment center FAO, reported on this page in Facebook that the index of milk profitability production «Ukrainian dairy index (UDI)» is 30% higher than in the same period of 2016.

In May 2017 farmers earned 30% more on every liter of milk than in May 2016. Mr. Yarmak points out that this is a real and not nominal profit because the cost part was also taken into account. The expert noted that there haven’t been such a high level of income in May since 2013.

Over the past five seasons UDI in May fell on average by 8.3%, and this May it decreased only by 6%.

«First of all the growing of export saved the situation on market, as well as the related factor of stabilization and recovery of world prices (an increase of more than 5% in May, according to the dairy index FAO). So processors have a rather attractive period — there will be enough milk in May-June, and prices will rise»,—  said the expert.

But will milk prices go up? Usually in June the UDI decreases by 2−3%. In the last year, the UDI fell by 12.7%. The expert noted that this year the UDI in June can make the first increase in its history.

Thus the amount milk from private households/individual sector decreases, and professional manufacturers have learned to work in cooperation, so one has to fight for their milk now.

According to the expert's words the grazing period may be favorable in terms of price for producers, and Ukraine may enter winter with such low stocks of butter and milk powder that in the winter one may have to import them.

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