In Ukraine, there is an increase in the cost of whole milk, which may affect not only the prices of dairy products but also various food items such as culinary products, beverages, desserts, and baked goods that widely use milk as a raw material.
This is reported by Finway
Price Dynamics of Different Grades of Milk
According to information from the Milk Producers Association, as of August 25, the weighted average price of whole milk reached 17.20 UAH per kilogram (excluding VAT), which is 1.20 UAH higher compared to last month. The price increase has affected all three grades of milk, which are determined by the content of proteins, fat, acidity, and density:
- extra – 17.35 UAH/kg (increase of 1.21 UAH);
- higher – 17.05 UAH/kg (increase of 1.20 UAH);
- first – 16.40 UAH/kg (increase of 0.95 UAH).
Factors Driving Price Increases and Forecasts
Analysts link the rise in whole milk prices to active demand from cheese producers and confectionery enterprises. At the same time, there are several additional factors affecting the market:
- A decrease in demand for whole milk products in Ukraine due to an increase in the share of imported cheeses to 50% and a reduction in domestic production volumes.
- A decrease in supplies to the markets of post-Soviet countries due to complicated logistics and increased competition from companies in Russia and Belarus.
- A decrease in butter prices in European Union countries.
- An increase in milk yields in Oceania, the USA, and Latin America due to favorable weather conditions.
“Experts consider it unlikely that there will be a significant increase in purchase prices for milk in September-October this year. They predict that at the beginning of September, a slight increase in the lower and middle price ranges of milk raw materials is possible, while changes in the upper price segment are unlikely.”