Dairy prices in Ukraine to rise by 15-20% in fall – Experts

Dairy prices in Ukraine to rise by 15-20% in fall - Experts

The rise of prices for dairy products for consumers this fall will amount to 15-20% in connection with rising prices of feed and the growth of utility tariffs, reduction in production, and the rise in prices for these products on the world market, UNIAN reports with reference to the press service of the Association of Milk Producers.

According to an analyst Yana Muzychenko, from mid-August to mid-September, the purchase price for extra class milk increased by 6% to UAH 6.16 per kg, and for milk from private households – by 2%, to UAH 3.15 per kg.

“Three main factors affected the rise of prices: the recovery of the global milk market, decline in production and increased cost… Considering all of the above-mentioned facts, the prices of dairy products for consumers this autumn could grow by 15-20%,” Muzychenko said.

The stabilization of the global dairy market is reflected in the bids at Global Dairy Trade, where a steadily growing trend has been recorded since early August. In addition, experts note a steady demand for dairy products.

Muzychenko noted a 2% reduction in milk production in Ukraine in Jan-Aug 2016 (amounting to 7.2 mln tonnes) compared to the same period last year. This was due to the reduction of livestock.

In addition, experts expect the traditional reduction of productivity of cows during the autumn-winter period. The growth of milk production costs is due to the rise in price of feed and the increase in utility tariffs, especially for electricity.

“In addition, despite the fact that farmers pay excise duties for road maintenance, there are many restrictions on their use. Milkmen are banned from transporting their products in daytime, besides the payload is limited to 20 tonnes per truck. As a result, these restrictions contribute to a rise in prices,” said Muzychenko.

According to experts, this fall, a carton of a 2.5% fat milk will cost UAH 16.20 per kilo, kefir – nearly UAH 21 per kg, 82% butter – UAH 155-160 per kg, and spread (72.5%) – UAH 67-70 per kg.

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