Ukrainian milk index continues to grow

Submitted by bashun on Mon, 12/11/2017 - 14:31

The Ukrainian milk index (UMI) continues to grow. In November, the growth was 5.2%.

This was reported by the economist of the investment department of FAO Andrii Yarmak on his Facebook page.
"UMI, despite the fact that we predicted it was not a very optimistic fate in November, not only did not fall, but also grew in more than in October," notes Andrii Yarmak. 

The growth amounted to just 5.2%, while on average over the previous six seasons it did not exceed 2.5%.
"The growth was mainly due to an increase in average milk purchase prices by 4.1% and a decrease in prices for feed mix by 1.1% due to the cheapening of sunflower meal," says the FAO analyst.

According to him, for 11 months of 2017 milk producers increased their incomes by 35.2%. In addition, this period was the most profitable for them in the last three seasons. The manufacturers' profit was also 10% higher than the average for the previous five years for the comparable period. Consequently, the way out of the crisis continues.

"And recycling continues to become less profitable. World indices are down, raw materials are up - there are additional disadvantages. But it's nice that we are already starting to develop our own direct processing by farmers, through cooperatives. Yes, now these are scanty volumes, but if our ambitious plan is implemented, then in the next year everything can change quite significantly, " notes Andrii Yarmak. 

In addition, according to the expert, experience suggests that in December, as a rule, the UMI grows by 2-4%.

"Last year there was an anomaly - the growth of UMI in December was 12.5%. Exactly one can say only one thing: professional milk producers can safely prepare for the holidays, and record this year as an asset. After all, they will earn about a third more than a year ago. Those who have added productivity and efficiency, but very many, will be able to talk about increasing profits, even by 40% per year, " sums up Andrii Yarmak. 
 

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