A few days before the end of last year, dairy farms were alarmed by reports about a 10% drop in prices on the raw milk market, which was initiated by a group of processing companies. However, a number of dairies did not support the reduction and left the terms of cooperation with their partners unchanged.
This is reported by ProAgro Group, citing the information of the Association of Milk Producers.
“Because of the polarity of pricing policies, the weighted average price of three varieties of raw milk in January 2022 decreased by 2% compared with December last year,” says AMP analyst Volodymyr Andriets.
Three fourths of the association participants received 3-5% reduction of prices for milk of the extra variety, another quarter of farms that produce the first variety had reduction of prices within 7-10%.
However, after the price demarche, some of the processing companies revised the offer for individual producers upward – in general, for those who had the largest previous reduction.
