At the same time, some plants have reduced the volume of raw milk purchases due to power supply disruptions, difficulties with the sale of finished products, and tougher competition with imported dairy products in Ukrainian retail chains. The general director of the Association of Milk Producers (AMP), Anna Lavrenyuk, told Latifundist.com in a commentary.
Recovery of demand for animal and milk proteins should be expected not earlier than early fall, so some small and medium-sized farms in Ukraine are considering options for temporary work stoppage. “Some farmers tell us that they are waiting until March: if there are no positive signals of recovery from the market, they will make a decision not to sow corn for silage, finish the rest of the fodder 2025 and stop the work of the dairy farm”, – emphasized Anna Lavrenyuk.
Deterioration of working conditions of milk producers and farms due to shelling coincides with the global trend for cheaper dairy raw materials and products. The dairy industry has been hit by the biggest crisis in the last 30 years. Key dairy regions – Europe, America and New Zealand – are experiencing the greatest pressure.
Earlier Logos Press reported that in December on the Ukrainian market the average price for first grade milk amounted to 14.30 UAH/kg without VAT, which is 1 UAH/kg lower compared to the price level in the previous month. The minimum price in farms amounted to UAH 14.00/kg, the maximum – UAH 14.50/kg. At the same time, representatives of industry organizations suggested that in the short term there are risks not only of further reduction of purchase prices by more than 50 kopecks/kg, but also of reduction of milk procurement by plants and processing volumes. Obviously, these forecasts are coming true.
What impact will this have on the Moldovan dairy market?
It is quite possible that the process of cheapening of raw milk on the Moldovan market of this raw material will continue in February.
In December, two largest dairy factories in Moldova – “JLC” S.A. and “Incomlac” S.A. – reduced their purchase prices for milk by about 10%.
Not all Moldovan dairy processing enterprises in December-January went for reduction of purchase prices for dairy raw materials and selling (factory) prices for finished dairy products. Probably, also for this reason, the average price for dairy raw materials in Moldova has not yet fallen below the fall range of 8-9 lei/kg (without VAT). At the same time, it should be reminded that usually the purchase prices for raw milk in the cold season are higher than in the warm season.
But this year the Moldovan population is experiencing a particularly strong pressure on family budgets from energy tariffs, tax and other mandatory payments. Accordingly, their purchasing power on the local food market is decreasing. All the more so because the Lent will soon begin, which traditionally reduces the demand for food of animal origin, especially for milk-intensive products of high fat content – butter and cheese.
At the same time, the active export of these products (which, by the way, require special storage conditions and are very energy-consuming) from Ukraine to Moldova will certainly continue. Under these conditions, Moldovan producers of dairy products will probably have to adjust their pricing policy once again.
