Main points
- The weighted average price of raw milk of three grades decreased to 14.35 hryvnia per kilogram excluding VAT, which is 85 kopecks less than a month ago.
- Milk prices are falling amid rising production costs, energy supply problems, and a 20% drop in the annual average price.
Milk prices rise despite challenges / Photo Unsplash
As of January 20, the weighted average price of raw milk of three grades decreased to 14.35 hryvnia per kilogram excluding VAT, which is 85 kopecks less than a month ago. The further price drop is taking place against the backdrop of rising production costs and problems with energy supply.
Milk prices fall despite cost pressures and blackouts
The weighted average purchase price of raw milk of three grades as of January 20 was 14.35 hryvnias per kilogram excluding VAT, down 85 kopecks compared to the previous month. This was reported by the Milk Producers Association.
Extra grade milk costs an average of 14.50 hryvnia per kilogram excluding VAT, which is 80 kopecks less than before, with a price range of 13.50 to 14.90 hryvnia per kilogram. The higher grade has fallen in price by 90 kopecks to 14.30 hryvnia per kilogram, and the price of first grade milk has decreased by 90 kopecks to 13.90 hryvnia per kilogram excluding VAT.
Pay attention! According to the association's analyst Georgy Kuhiashvili, in the second half of January, prices for all types of milk continued to decline, while milk from the population also became cheaper. In annual terms, the average price fell by 20%, which creates a difficult situation for the industry, as purchase prices do not cover the increase in production costs on dairy farms.
An additional challenge for producers remains the shortage of electricity due to regular shelling of energy infrastructure. Long blackouts complicate the shipment of milk from farms and the work of processing plants, so if the situation worsens, farmers will have to prepare anti-crisis scenarios.
Important! The expert also advises to review investment plans for 2026, since in the conditions of the energy crisis and weak demand, a significant increase in production is risky. Rising costs, electricity generation costs, and severe frosts have already led to a drop in milk yields and logistical difficulties in the industry.
Milk is getting cheaper in Europe: overproduction and collapse in butter prices are putting pressure on the market
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In the European Union, the decline in raw milk prices is due to increased production and excess dairy stocks.
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The largest price decline over the year occurred in Belgium (27%), the Netherlands (24.1%) and Latvia (23%), while in Ukraine it was 20.5%.