High purchase prices contribute to the growth of production of marketable milk

From the beginning of the year, milk production in the category of agricultural enterprises increased by 1.3% compared to the previous year, and in August the growth was 3.6% compared to August 2016.

This is reported by Infagro.

In September, the struggle for milk and raw materials zones intensified even more. Accordingly, purchasing prices for raw materials show a rapid growth. Against the backdrop of export prices and the appreciation of the USD to the UAH, the value of stock dairy products strengthened, respectively, spot milk and the reverse also went up.

Favorable price trend affects the official statistics. It is clear that milk production for eight months continues to decline (-0.9%) and is 7171 thousand tons. The general picture is spoiled by the category of households (stable decline -1.6%).

Nevertheless, the agricultural enterprises show remarkable success. Since the beginning of the year, milk production in the category has increased by 1.3% compared to the previous year, and in August the growth was 3.6% compared to August 2016. With such dynamics, the indicators of agricultural enterprises at the end of the year can reach a positive 2%. If the government's calculations are correct, in the third quarter, a serious increase in industrial processing should be observed.

The dynamics of the population also slowed the rate of decline. Of course, the number of cows in the country continues to decline - at the end of August, there were 2,131,600 animal units, which is 2% less than the same period last year. However, this percentage decline was weak compared to all previous months of 2017.

It is noted that the high purchase price of milk allows producers to be not just profitable, but more profitable. This moment is simply necessary to use - to purchase and improve livestock, to invest in new complexes and projects.