Головна Animal husbandry Milk production is declining, while production costs are rising

Milk production is declining, while production costs are rising

According to the results of three quarters of 2021, the production of milk of all kinds in Ukraine decreased by 6.1% and totaled 6,812.7 thousand tons. Of these, 2 million 79.9 thousand tons or 30.5% were produced in the industrial sector.

This is reported by “ProAgro Group” with reference to the information of the Association of Milk Producers.

Milk production by industrial enterprises during the analyzed period was stable. Statistics showed a decline of only 0.8%. Farms of Poltava (295,1 thousand tons; 1,8%), Cherkassy (217,9 thousand tons; 5,7%) and Kharkiv (187 thousand tons; +0,2%) oblasts provided most of the raw milk.

At the same time, the biggest increase in production was registered in such oblasts as Ternopil (87.8 thousand tons; +13.4%), Kherson (37.3 thousand tons; +9.1%) and Vinnytsia (169 thousand tons; +5.6%).

Household farms have reduced production in three quarters of 2021 by 8.3% – to 4 732.8 thousand tons, which is 69.5% of all milk produced in the country. All regions, without exception, show a downward production dynamics. The regional situation in the household sector is the following: Vinnytsia oblast (350.6 thousand tons; 13%), Khmelnytskyy (367.5 thousand tons; 0.6%), Lviv (334 thousand tons; 8%).

APM analyst Yana Linetska noted that the industry is entering winter, and therefore there will be an even greater shortage of milk in the market.

“However, no one expects the traditional seasonal increase in dairy prices, because the situation of processors is quite critical. The main reason is the rise in price of natural gas, which operates the processing facilities. However, this factor will also affect the producers. Even now the sowing season is threatened by the cosmic prices for mineral fertilizers. Thus, the price for carbamide in a few days rose to almost 28 thousand hryvnias. In addition, it is difficult to find fertilizer on the market. Many companies simply suspend the production because of the high price of natural gas”, – the expert said.

This situation also affected the growth of production cost of milk. No one doubts that fodder will not be cheap this year. And it concerns not only Ukraine but the entire world dairy market.

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