Milk Prices Drop: Association Names Unexpected Reason for Price Decrease.

The Ukrainian dairy market is witnessing price stabilization for raw milk. This is due to reduced exports during the Christmas and New Year holidays.

According to the Dairy Producers Association, there are surplus raw materials, and processors have reduced their demand, which may lead to a decrease in purchasing prices in the near future.

As of December 25, the average purchasing price for extra-grade milk was 19.60 UAH/kg excluding VAT, which is an increase of 20 kopecks compared to the previous month. In different farms, prices range from 18.50 to 20.50 UAH/kg excluding VAT. Higher-grade milk costs 18.65 UAH/kg excluding VAT, while first-grade is valued at 17.65 UAH/kg excluding VAT.

Georgiy Kukhaleyshvili, an analyst at the Association, notes that there are surpluses of raw milk in the market, leading to price stabilization. The decrease in butter prices in other countries also complicates the situation and limits export opportunities for Ukrainian producers.

Another major influencing factor is Poland's decision to introduce 1000 tons of butter from its reserve fund to stabilize prices. Ukraine is also observing a decrease in the consumption of dairy products due to falling purchasing power, increasing demand for more affordable alternatives, such as spreads.

Forecast for 2025

Experts predict a further decrease in purchasing prices for raw milk starting from the beginning of 2025 due to a likely increase in surpluses in the domestic market. The weighted average price of three grades of milk currently stands at 18.63 UAH/kg excluding VAT, exceeding last month’s figures by 7 kopecks.

It has also become known that Lebanon is interested in purchasing Ukrainian meat and dairy products.