At the beginning of January 2025, Ukraine recorded a decrease in prices for raw milk and butter. The main reasons for this were a decrease in demand from dairy processing enterprises, limited purchasing power of the population and a drop in demand for dairy products on the domestic market.

According to the Association of Milk Producers (AVM), the average purchase price of extra-grade milk as of January 6 was 19.10 UAH/kg excluding VAT. This is 60 kopecks less compared to the previous month. Prices on farms ranged from 18.50 to 19.50 UAH/kg excluding VAT. While the lower price limit remained unchanged, the upper one decreased by 1 UAH.

Premium milk also became cheaper: the average price was UAH 18.35/kg excluding VAT, which is 35 kopecks less than in December. The price range for this grade varied from UAH 17.80 to UAH 19.00/kg. As in the case of extra grade, the lower limit remained stable, and the upper limit decreased by 50 kopecks.

Prices for first grade milk remained practically unchanged. The average price was UAH 17.65/kg excluding VAT, and the minimum and maximum prices in farms remained at UAH 16.50/kg and UAH 18.50/kg, respectively. In general, the weighted average price for the three grades of milk decreased to UAH 18.37/kg excluding VAT, which is 32 kopecks lower than a month ago.

The price decline also affected butter, which became cheaper due to reduced demand. The growth in prices for fermented milk products also stopped. This trend is explained by the decline in the purchasing power of Ukrainians, which affects the overall dynamics of dairy product consumption.

Against the background of these changes, an increase in imports of finished dairy products, in particular cheeses, was noted in December. High prices for domestic products contributed to more active imports of imported goods, which are often offered on more attractive terms for consumers. This indicates the need to balance the domestic market and further analyze the situation to support domestic producers.