Ukraine managed to avoid seasonal milk price fall for the first time
In the first half of 2013 the average purchase price of Class I milk from farms ranged from 3.75 to 4.05 UAH/Kg. This slight variation means that Ukraine for the first time during many last years has managed to avoid the seasonal collapse in prices. This was reported by the Association “Ukrainian Agribusiness Club” (UCAB).
Based on the data of State Statistics, during the first six months of 2013, Ukraine has produced 5.5 million tons of milk, which corresponds to the volume of the previous year; production growth was only 0.6%. Seasonality of production still remains very high, because this year the June volume twice exceeded production in January and reached 1.2 million tons, however it did not have a significant impact on prices, which within the whole reported period remained at a high level.
In June 2013 the purchase price of milk from farms was 3.70 - 4.50 UAH/Kg, depending on quality, and was 32-37% higher than in the same month of previous year. In 2012, due to the increase of milk production in Ukraine and in the world, price of milk during summer months rapidly declined and was 2,80-3,20 UAH/kg, which is even lower than prices in 2011. Therefore, the profitability of milk production in 2012 was very low. In this respect, current price of milk is quite favorable, however, the cost increase of concentrated feed was observed. This applies particularly to soybean meal, the price of which due to its deficit stands now on the level of about 5750 UAH/Ton, which is 25% higher than in previous year. After harvesting the feed prices might be balanced.
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