Raw milk prices are rising on the domestic market of Ukraine

Since the beginning of July, there has been an increase in raw milk prices in Ukraine due to insufficient supply on the market and increased demand from milk processing enterprises. According to "ProAgro Group", this trend has become relevant since the beginning of the new month and is associated with a change in the balance between supply and demand for milk.

Currently, the average purchase price of extra grade milk was UAH 13.84/kg without VAT, which is an increase of 15 kopecks compared to last month. The higher grade of milk has also become more expensive and now costs an average of UAH 13.84/kg without VAT, which is 15 kopecks higher. The price of first grade milk increased to UAH 13.04/kg without VAT, which is 9 kopecks more than in June. The total weighted average price for milk of three varieties is UAH 13.57/kg without VAT, which is also an increase of 13 kopecks.

Experts note that since the end of June, the demand for raw milk exceeds the available supply on the domestic market. This led to a spot price increase at the beginning of July, despite the fact that the impact of the increase in fuel prices on factory milk prices is not yet felt. However, the shortage of raw milk has already caused an increase in the average price by 55 kopecks on the spot market compared to June.

The analyst of the AVM company, Georgy Kukhaleishvili, emphasizes that in the future, purchase prices for raw milk may continue to rise if the supply on the domestic market continues to decrease. This causes certain concerns among market players and may affect the general dynamics of prices in the dairy sector of Ukraine.

In general, the current situation on the milk market reflects the need for a balanced approach to supply and demand management to ensure stability and transparency in the price policy of the agricultural sector.