Головна Animal husbandry Milk processors plan to raise prices by at least 10%

Milk processors plan to raise prices by at least 10%

The cost of energy resources today is one of the most sensitive economic topics, because it concerns all sectors of economic activity. The dairy industry is not an exception here.

According to “ProAgro Group”, the share of energy in the structure of the cost of dairy products is 15%, and for producers of dried, pasteurized or evaporated milk is even more. This was stated by the analyst of the Association of Milk Producers, Volodymyr Andriets, in a commentary to the news portal “Telegraf”.

According to the market operators, the price of gas for them was raised from 11 to 38 UAH per cubic meter from October 1, so they will have to increase selling prices of their products.

“The rise in prices for dairy products has been observed throughout the current year, which was caused by the rise in price of raw milk and inflationary processes in general. Since the beginning of the year socially significant groups of dairy products have risen by 7.7% on average, so there is resistance from retail chains – they are reluctant to make serious price revisions, because after such steps there is a drop in sales. In addition, the producers have nowhere to retreat and they have set requirements to raise prices in several stages by at least 10%,” said the expert.

Whether the producers will be able to raise prices to the minimum level acceptable for them remains a question that looks more doubtful, because such a level of price increase at the beginning of the heating season and amid increased household spending on other goods and services will cause a significant drop in demand, especially since according to unofficial information from processors, some of them are already having difficulties with sale of their products.