Further price increases are expected due to a shortage of raw milk.
Over the past two years, prices for raw milk have been rapidly growing in the second half of the year. Last year they grew by more than 30%, this year the growth has already exceeded 40%, and by the end of the year it is expected to be more than 45%.
This is reported by “Business.Censor”.
It is reported that at the end of November, average prices for raw milk exceeded 20 UAH/kg, while in June they did not exceed 14 UAH/kg. If we compare the price level of June 2023 and the end of November 2024, the difference will be almost 1.75 times.
“This is explained by the shortage of raw milk in Ukraine – over the past seven years, Ukraine has lost more than 3 million tons of raw materials, as well as the rise in prices for milk fats in Europe and the world. This has led to a significant increase in the volume of their export from Ukraine,” the publication notes.
It is also reported that in order to maintain their own raw material base, dairy plants were forced to agree to regular price increases in contracts for the sale and purchase of raw materials that the farm needs. Since farms constantly receive offers “from the outside” about the possibility of purchasing at more “decent” prices. At the same time, the price of dairy products, which we already see in stores, primarily depends on the price level of raw milk. The cost of labor, energy, packaging materials, etc. also contribute to the rise in price.
Since July, Ukraine has recorded a significant increase in prices for dairy products – primarily butter. Prices for kefir, milk and cottage cheese have increased by at least 16%. Butter has increased in price by 35%.
“As experts note, the increase in prices for raw milk is still ongoing, so at least until February 2025, Ukraine will record an increase in prices for dairy products. The new law on increasing taxes will also affect the price of dairy products,” the publication writes.
Earlier, the NBU reported that low crop yields, deteriorating quality of vegetables and fruits, as well as the rapid depletion of reserves since last year contribute to an increase in prices for food products.
