Dairy processors’ losses in 2024 may reach UAH 1B – experts
This was reported on Facebook by the Union of Dairy Enterprises of Ukraine (UDEU), Ukrinform reports.
According to UDEU experts, the reasons for this phenomenon are a sharp and significant increase in the cost of raw milk, which lasted several months. In addition, demand has decreased due to a decrease in consumer purchasing power, as well as prices for major export products, namely butter and milk powder, which made exports unprofitable.
“In the current situation, the UDEU considers it necessary to hold consultations with partners - milk producers - to develop a new model of relations. The UDEU believes that the new model should take into account the practices adopted in the EU countries, where long-term contracts are the basis of relations between producers and processors,” the statement said.
It is expected that such agreements will provide predictability in the work and contribute to the sustainable development of the domestic dairy industry.
As reported, in 2024, the average price of raw milk in Ukraine amounted to USD 42.45 per 100 kg, which is 20% more than in 2023.
In the second half of January 2025, purchase prices for milk decreased due to surplus raw milk, reduced demand from dairy processing enterprises and reduced consumption of fermented milk products in the country.
