Further rise in price of raw milk leads to closure of enterprises and bankruptcies

In the first half of October, the commodity market of Ukraine was actively growing in value, driven by a seasonal decrease in supply and a global rise in prices for exchange-traded dairy products. – PioneerProduct

At the same time, the situation for processors continues to deteriorate, because along with raw materials, energy costs are growing, and raising prices for finished products rests on demand and the unwillingness of chains to raise prices on the shelf. In the current situation, a further rise in the cost of raw materials threatens bankruptcy.

The dynamics of the purchase prices of raw milk in Ukraine is as follows: over the past month, the increase is about 0.5 UAH/kg, over the past two months - about 1 UAH/kg, over the last year - about 2 UAH/kg.

The average level of the cost of milk from Ukrainian agricultural enterprises already corresponds to the prices of Western Europe and RUSSIA - 0.38 euros / kg in October (based on 3.8% fat and 3.2% protein, excluding VAT).

The price levels of raw materials for agricultural enterprises in mid-October amount to 11.90-13.55 UAH/kg at a rate of 20% VAT (9.9-11.3 excluding VAT).

The cost of milk produced in the households of the population in Ukraine, depending on the region, is in the range of 6.7-9.0 UAH / kg without VAT. On average, the price level is 7.8 UAH/kg.

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