Raw Milk Prices Continue to Decline in Ukraine
In the second half of March 2025, the decline in purchase prices for raw milk in Ukraine continues. The reduction in market surpluses, which is putting pressure on prices, has occurred due to increased exports of dairy products and a slight rise in domestic consumption.
This is reported by AgroReview
As of March 25, the weighted average price for three grades of milk was 16.2 UAH/kg (excluding VAT), which is 40 kopecks lower than in the previous month. According to analyst Georgiy Kukhaleyshvili from the Milk Producers Association, the average purchase price for extra-grade milk has decreased to 16.35 UAH/kg, which is 45 kopecks less than at the beginning of February.
Price Dynamics for Different Grades of Milk
As of March 25, the average price for higher-grade milk was 16.15 UAH/kg, which is also 50 kopecks lower than last month. The price range for this grade varied from 15.5 to 16.3 UAH/kg. For first-grade milk, the average price has decreased by 35 kopecks compared to the second half of February and now stands at 15.65 UAH/kg. The minimum price in farms has been recorded at 15 UAH/kg, while the maximum is 16 UAH/kg.
Georgiy Kukhaleyshvili noted that the consumption of dairy products in Ukraine is supported by promotions conducted in retail chains.
Prospects for the Dairy Market
The profitability of producing skimmed milk powder and butter has improved, unlike the production of cheese products and casein, where indicators are deteriorating. Outbreaks of foot-and-mouth disease in Hungary and Slovakia, as well as the likelihood of the disease spreading to Poland and Austria, could lead to further declines in purchase prices.
Dairy processing enterprises in Poland and Austria export significant volumes of dairy products. In the event of quarantine measures being implemented, they may switch to producing long-shelf-life products, such as butter and powdered milk. These goods are key for Ukrainian exports, and the accumulation of butter and powdered milk in warehouses across Europe could affect the decrease in prices for similar products in Ukraine.
Since the beginning of the year, enterprises have increased milk production by 4%.