The issue of milk prices is always relevant for the company Moloko Vitchyzny, as well as for other producers of raw milk. We study and analyze the latest trends, share with you our observations and forecasts.
So read the opinion of the expert of Moloko Vitchyzny LLC.
Today, many producers of raw materials in the dairy industry face the question: “Is it appropriate to continue breeding cattle?”. As the profitability of dairy farming continues to decline due to many factors. The least efficient farms are forced to reduce livestock or close down farming altogether. After all, as you know, in Ukraine, according to statistics, we miss an average of 1,5 thousand cattle per month.
The increase in purchase prices for raw materials does not save the situation, even though the price of Extra milk has increased by almost 10% compared to 2019, and in the second half of November it crossed a new barrier. This price level is caused by the shortage of quality raw materials on the market, so processors paid for one basic kilogram of raw materials, more than UAH 12,00.
Analysts predict that such a significant increase in raw material prices was the last this year. However, we believe that the dynamics of growth in purchase prices for raw materials will continue, given the situation in which most farms find themselves, especially those who live separately from crop production and have income only from the sale of livestock products.
We propose to consider the schedule from the analytical department of AMP as of 27.11.2020.
Fig. 1 – Dynamics of milk prices, UAH / kg, including VAT