Ukraine: The average purchase price of extra-grade milk was recorded at UAH 12.18/kg

The prices for raw milk in Ukraine have remained stable since February 21, as demand for dairy products both domestically and internationally has weakened. The average purchase price for extra grade milk is UAH 12.18/kg, with a range of UAH 10.84/kg to UAH 12.80/kg in farms. Despite this stability in Ukraine, raw milk prices in the European Union have been falling due to an overheated market in 2022. Factors such as decreased milk production and increased production costs led to higher purchase prices for raw milk, but demand did not meet expectations and a surplus formed, resulting in price drops. This surplus has impacted export markets, including Ukraine, which faced challenges with its main dairy export market, the EU, due to oversaturation. Domestically, Ukraine's dairy market faces limited demand and high consumer inflation, leading to economizing behaviors and reduced dairy product purchases. Negotiations about reducing the price of raw milk are underway for the second half of March.