The severe drought that lasted for the past two months has led to a significant decline in milk production on industrial farms. This has led to an increase in the price of raw materials, and as of the beginning of this month, the price of raw milk has already increased by 4.5% compared to August. Thus, in the coming months, milk and dairy products may rise in price by 5-10%, depending on the type of product: for example, milk for consumption and kefir may rise by about 5%, while sour cream and butter may rise by 10-12%.

This was announced by Olena Zhupinas, project manager of the Association of Milk Producers, during the telethon "United News", ProAgro Group reports.

According to her, the cost of milk may also be affected by rising energy prices. However, imports of dairy products from Poland may be one of the factors limiting the price increase. In addition, the purchasing power of consumers is an important factor in price formation. Currently, milk consumption in Ukraine is growing: since the beginning of the year, it has increased by 12% compared to 2022.

It is worth noting that one of the key factors in the formation of prices for finished dairy products is the margin of retailers. Retailers make the most profit from the sale of dairy products, as the profitability of milk production and processing is quite low. At a time when the margin on finished dairy products ranges from 10% to 30%, depending on the product category.