The year of 2020 has been a test for everyone working in the dairy industry. Recalling and analyzing the end of the first quarter, in addition to the seasonal decline in raw milk prices, declining exports and active imports of dairy products, we had an additional, unexpected, impact associated with global and domestic quarantine measures.
Today, the season of lower raw material prices is over, we are all gradually adjusting to the conditions dictated by time, and for the third month in a row we see an upward trend in the milk market. The price of raw materials has practically recovered and has risen to the indicators we had at the beginning of the year.
We offer to consider interesting information from the analytical department of AMP, which shared the results for September and graphically reflected what happened to the prices of raw milk during the year:
for a month the average price added 20 kopecks to 10,24 UAH / kg. At the same time, the extra grade rose by 21 kopecks to 10,85 UAH / kg, the higher by 22 kopecks to 10,30 UAH / kg, the first by 17 kopecks to 9,56 UAH / kg.
Prices for medium and large batches of extra grade by region fluctuated within the following limits:
- north and center – 10,6−11,1 UAH / kg,
- south and east – 10,5−11,0,
- west – 10,5−11,04 UAH / kg.
Fig. 1 – Dynamics of milk prices, UAH / kg, including VAT
It should be noted that the decline in raw milk prices was more active than last year. But its recovery is also more or less active. At the moment, we have optimistic forecasts for the purchase prices of raw milk, but at the same time all producers have faced the problem of raising the price of feed, so we have another test on the way.