Milk in Ukraine will only become more expensive, - expert

31.07.2014 18:09
  (Moscow time)
Views: 685
 
Society, Policy, Ukraine, Economy


Kyiv, July 31 (Navigator, Vladimir Mikhailov) – The usual seasonal reduction in the price of milk did not occur, despite the loss of the Russian market.

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There are no prerequisites for a reduction in prices for dairy products, says Maria Kolesnik, head of the analytical department of the AAA Consulting Agency. She stated this at a press conference in Kyiv.

“Usually in the summer, purchase prices for milk decrease, but this year this did not happen. Prices remain at a fairly high level. Now the price, depending on the region, is at the level of 3,8-4,2 UAH. per kg of first grade raw milk for agricultural enterprises. This is quite high, at the level of February prices two or three years ago,” she said.

This was the reason why milk did not become cheaper in retail chains either. Although manufacturers, as a result of restrictions on supplies to Russia, were forced to partially reduce prices, not to retail chains, supplies to which are carried out under long-term contracts, but to wholesale companies that are trying to put pressure on commodity producers.

“In small retail outlets and in some markets, there may be some price reduction due to excess production and the inability to find additional markets. I think that there will be no reduction in the near future: closer to autumn, raw milk production volumes are declining, and purchase prices will only increase, especially since today the cost of fuel and gas remains at a high level,” predicts Maria Kolesnik.

Let us recall that from July 28, Russia introduced a complete ban on the import of any dairy products from Ukraine, explaining this by repeated violations of veterinary and sanitary requirements by Ukrainian producers.

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