Milk profitability decreased by 13% in 2018

Submitted by bashun on Tue, 09/11/2018 - 11:56

Over the eight months of 2018 professional milk producers received an average of 13.1% less profit than during the same period in 2017 and 7% less than the average for the same period in 2012-2017. This was reported by the economist of the FAO investment center Andrii Yarmak, the press service of FAO reported according to

The expert noted that the current year is not the best year for Ukrainian dairy farmers. Seven out of eight months the Ukrainian milk index (UMI) is falling. And the growth that we saw last month, the expert noted, was very insignificant and completely overlapped with the fall in August.

Negative pressure on the world market did not allow our Ukrainian dairy index (UMI) to grow, which we predicted. If we take into account that world prices for dairy products continued to fall in August, the estimated average drop was about 5%, then the decrease of UMI could be more. However, the main reason for the UMI decline was not the low prices for milk, but an increase in the cost of feed rations resulting from a significant rise in the price of corn and feed wheat, Yarmak wrote.

According to him, the same situation was with milk profitability for the period of January-August. The worst were only 2015 and 2016 years.

What to expect in September? As a rule, in September we see the growth of UMI. Prices for high grades of milk have already gone up in Ukraine. Therefore, it is likely that we will see a positive change. Prices for milk powder add a certain slight positive growth in world, and it is completely offset by a significant drop in oil prices, which was the main reason for the growth of our prices in 2017, he noted.


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