The cost of dairy products is growing due to a decrease in the grain harvest.
In 2024, the cost of dairy products rose due to a decrease in grain production and an increase in the cost of compound feed, as well as due to a seasonal decrease in milk yields.
This was reported by economist Oleg Pendzin, a member of the Economic Discussion Club, in a commentary to UNIAN.
“In 2024, the volume of grain production (including corn) significantly decreased – the harvest was smaller, and grain became more expensive. Due to This increased the cost of the feed base – compound feed (consisting mainly of cereals, in particular corn), he said.
Pendzin explained that seasonal factors, including cold weather, reduce milk yields in households, which leads to an increase in the price of raw milk. He noted that most raw milk in Ukraine is produced by households.
According to him, the prices for feed will not decrease, and the only factor that can limit the growth of milk prices is people's ability to pay for it.
“Currently, manufacturers are trying to raise the cost of products using marketing methods. For example, buyers no longer pay for a liter of milk, but for 880 grams, and a pack of butter is now 180 g instead of 200 g. There are many ways to avoid scaring the consumer. But, in fact, nothing changes – prices will continue to rise,” he said.
He pointed out that in 2024, the consumer basket in Ukraine has increased in price by 14%, while the price of milk has increased by 20%. The economist predicts that by the end of 2025, raw milk will increase in price by another 10-12%. He also noted that the cost of dairy products will constantly grow by 2-3% monthly until May 2025, and after that, when the cattle are transferred to open pasture, prices may stabilize or even decrease.
Pendzin cited official data from the State Statistics Service, according to which the average price of pasteurized milk in Ukraine in November 2024 was UAH 43.71 per liter, which is UAH 5.5 more than at the beginning of the year. Prices for butter, sour cream and cheeses have also increased.
Recall that this week, Ukrainian gardeners raised prices for high-quality apples due to increased trade and purchasing activity.