Purchasing prices for raw milk are strengthening

Submitted by bashun on Wed, 08/29/2018 - 17:13

As it was expected, a wave of strengthening procurement prices for milk has been since early August in Ukraine. Compared to July, raw milk prices raised by 25 kopecks, INFAGRO reported.

The driver of the change in the value of raw milk is the domestic market, since exporters cannot yet boast of high prices. While the supply of milk is still at a more or less high level and there is a desire to enter in September with an advantage on the shelf, Ukrainian whole-milk farmers and cheese makers decided to massively withdraw to "shares." Thus, the production needs of processors in raw materials have increased significantly in recent weeks, which, against a background of seasonal decline in the production of raw milk, caused some of its deficit in the market (especially for quality raw materials).

Official statistics of milk production, unfortunately, confirms fears. As in June, due to difficult weather conditions, the July figure is inferior to July of last year (-2.3%). At the same time, production of raw materials in the category of agricultural enterprises decreased by 3.0% by July 2017.

Total production of milk in Ukraine for seven months amounted to 6.0 million tons, which is 2% less than the same period last year.

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