In W33 in the dairy landscape, the United States Department of Agriculture (USDA) reports that Southern Europe's milk production is declining due to Jul-23’s extreme heat, negatively affecting cow productivity. This also caused shortages for European cheesemakers. Although countries like Poland, the Czech Republic, and Romania increased milk production, factors such as adverse weather and market conditions negatively affected the European region overall. The United States (US) is also grappling with reduced productivity due to heat and rising fodder prices. US farmers are curbing milk output, impacting products like butter, pasteurized milk, and cheese. The situation in New Zealand is influenced by both unfavorable weather conditions and changes in China's import patterns. The El Niño phenomenon poses further risks. Meanwhile, Australia faces the weakest season in 30 years due to supply constraints and competition among processors. Raw milk prices have been fluctuating, with some areas seeing price increases due to supply limitations.
Raw milk prices in Ukraine increased by an average of USD 0.0035 as of August 7. This can be attributed to intensified demand from processing enterprises amidst reduced supply caused by weather conditions. Extra-grade milk's average purchase price stood at USD 0.32 per kilogram (kg) without value-added tax (VAT) in W33, an increase of USD 0.0033 month-on-month (MoM). The higher grade averaged USD 0.32/kg. Premium milk's price ranged from USD 0.27/kg to USD 0.33/kg without VAT. First-grade milk's average price stood at USD 0.30/kg, an increase of USD 0.0041 MoM. The heatwave reduced milk yields while demand from cheesemakers and dairy product producers preparing for the autumn-winter season intensified. With the potential rise in consumer demand after the summer, the raw material price increase may affect dairy product prices. The Association of Milk Producers is advocating for tax code changes to reduce VAT rates for milk producers and processors. This move aims to lower prices for raw materials and finished products.
Lastly, the regional Ministry of Agriculture reports that gross milk yield in the Republic of Bashkortostan in Russia reached 480.22 thousand metric tons (mt) as of August 11. This is an increase of 13.98 thousand mt compared to the same period in 2022. The highest milk production was registered in the districts of Chekmagushevsky (47.99 thousand mt), Ilishevsky (34.76 thousand mt), Aurgazinsky (31.08 thousand mt), Dyurtyulinskii (26.34 thousand mt), and Sterlitamak (25.29 thousand mt). The daily gross milk yield across the region reached 2.15 thousand mt, an increase of 3.4 mt compared to 2022. The highest yields per day were in the Chekmagushevsky (212.0 mt), Ilishevsky (143.0 mt, Aurgazinsky (142.0 mt), Sterlitamak (118.0 mt), and Dyurtyulinskii (111.0 mt) districts. The average daily milk yield per cow stood at 20.2 kg, surpassing the 2022 level by 1.8 kg. Leading districts in daily productivity per cow were Ermekeyevsky (30.7 kg), Meleuzovsky (30.5 kg), Aurgazinsky (29.1 kg), Uchalinsky (29.0 kg), and Abzelilovsky (28.2 kg).
