Revenues from milk production decreased due to the devaluation of the hryvnia

In Ukraine, there was a significant decline in income from milk production in January.

However, according to the economist of the Technical Cooperation Department of FAO Andrii Yarmak, there was really no special increase in prices for dairy products. There was a rapid devaluation of the Ukrainian currency, which was also promptly reacting the prices of forage grains and protein meals, which, in the main, are exported. The press service of FAO reports.

"We have not seen the euro-dollar ratio at 1.25 for a long time. And this is in the hands of those dairymen oriented to export to the EU countries. As the hryvnia devalued not only to the euro, but also to the US dollar, it is, theoretically, in the hands of those who export to other countries of the world, " says the expert.

Andrii Yarmak added that milk producers felt the growth of feed costs even more quickly, and it is not so easy to bargain with them, because over the last few years they have "increased their muscles". In addition, many enterprises now already have a high volume of milk, and the cooperation of large producers is gradually further strengthening their positions.

However, despite this decline, profits in January 2018 were only half a percentage point lower until the first month of last year. And the profit level in January was the second highest in the last four years, and 28% higher than the income of January 2016