Profit of milk production fell by almost 10% over the month

It bears reminding that by 2017 the quality of milk purchased in industrial farms has increased. According to experts, 2018 will be less profitable for milk producers than the previous one.

According to Andrii Yarmak, in February 2018 the profitability of milk production was already 5% lower than in the same month of 2017. In January, the yield was almost comparable. To increase in price of feeds, the factor of lowering prices for milk was added. And this is already in February. And despite the fact that global prices in January-February, mainly grew.

"Since the beginning of the year, the fall was almost 11.7%. The main reason for the drop in the profitability of milk production has almost nothing to do with the dairy market - it is the result of the devaluation of the currency and the increase in the prices of concentrated feeds, which we mainly export" - he writes.

In addition, world prices for dairy products remain too high, taking into account the fundamental factors. This will certainly provoke even greater growth in production, which will put pressure on prices. At the same time, very expensive milk fats cause even more pressure on protein prices. Therefore, there is a possibility of a price collapse in the current year.

"The seasonality of domestic milk prices is declining, which was predicted last year, so it happened, and if this trend continues, we can get quite a decent level of UMI in the summer, and relatively low in the second half of the season" - sums up the expert.