The Market is Shaking: Ukrainians Warned About the Surge in Dairy Prices.

Ukrainians Warned About the Rise in Dairy Product Prices

Analyst of the Milk Producers Association Giorgi Kukhaleishvili noted that currently the prices for raw milk in Ukraine are stable. The increase in demand for Ukrainian dairy products abroad contributes to this stability. However, the further development of the situation will depend on the success of exports, especially in the context of declining domestic consumption.

At present, prices for milk of different grades remain at the following levels: extra grade milk is purchased for 16.12 UAH/kg, higher grade milk for 15.93 UAH/kg, and first grade milk for 15.60 UAH/kg. The overall weighted average for the three grades was 15.97 UAH/kg.

Changes in the balance occurred in the market of ready dairy products against the backdrop of increased export volumes... The profitability of producing dairy products from higher grade milk has improved.

However, the possible rise in purchase prices for milk in the future may be limited by the European Commission’s cancellation of autonomous trade measures for Ukrainian dairy products. These measures are important for the industry’s stability.

Therefore, the continuation of autonomous trade preferences will be critically important for the Ukrainian dairy industry. Otherwise, the industry may face overstocking issues, which could put pressure on prices and lead to their decline.

Context

The rise in dairy product prices may affect consumers and agricultural producers, prompting them to seek alternative markets or cut back on their own dairy production. This may also lead to consumer complaints about new prices and affect their shopping habits and choices in stores. For agricultural producers, rising prices can serve as a push for production expansion as well as a test of their financial capabilities and competitiveness in the market. Thus, producers and consumers of dairy products must be prepared for potential price changes and seek optimal strategies amid the increasing cost of products.