The dynamics of spot milk prices, which fell even below the level of the end of December - the period of holidays and vacations - speak eloquently about the demand. The current indicator is almost twice lower than the primary market prices (which, of course, cannot decrease so dynamically). The European spot trades within 0.28-0.35 EUR/kg and on average is already cheaper than the Ukrainian similar product.

The price of all exchange goods in the EU continues to decrease, with the "leaders" being SZM/butter and cheese/whey. In Ukraine, the raw material market is kept in balance thanks to cheesemakers (producers of cheese and cheese products), while the prices of stock dairy products are actively decreasing under the pressure of foreign (European) markets. The margin of milk powder and butter production at current raw milk prices is negative (average calculations correspond to -16%). In the current week, the difference in the price of Ukrainian raw milk on the spot against the EU is +10% (last week +2%), the difference in EM SZM/butter is -16% (last week -17%). Milk ...

Source

MilkUA

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