In Ukraine, prices for dairy products may soon increase by another 4-5%. According to experts, over the past year, the prices of basic dairy products have already risen by 15-25%.
This is reported by Finway
Current Situation in the Dairy Market
As of today, the average price of milk in Ukraine is 52-60 hryvnias for 900 milliliters, sour cream is sold for 48-55 hryvnias for 350 grams, and butter ranges from 100-120 hryvnias for 200 grams. Experts attribute this significant price increase primarily to a reduction in the supply of raw milk in the market.
Reasons for Price Increases
The main factor behind the rising prices of dairy products has been the decrease in milk yields, which is related to the end of the so-called “big milk” period. In the fall, there is a traditional seasonal decline in production, which puts pressure on prices. Additionally, the active export of dairy products abroad affects the prices, reducing the volume of products available in the domestic market.
“Due to low profitability and wartime risks, many farms are reducing their dairy cattle – the herd decreases by 6-7% each year. The reduction in raw materials leads to an increase in purchase prices for milk, and consequently – for finished products,” explained Hopka.
According to the analyst, the decline in production profitability and the threats associated with the war force enterprises to reduce their dairy herd, which decreases by 6-7% annually. This leads to a shortage of raw materials and rising purchase prices, ultimately resulting in higher prices for consumers.