REUTERS
The profitability of milk production in January-September 2019 was 22.6% up y-o-y.
Economist from the Investment Center of the Food and Agriculture Organization (FAO) of the United Nations Andriy Yarmak says the profitability of milk production in Ukraine in September 2019 grew by 18.7% year-over-year (y-o-y).
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The Ukrainian Milk Index (UMI), conditional profitability of milk production, at Ukraine's enterprises soared by 18.7% in September, which has been the highest indicator for the month since 2013, Yarmak wrote on Facebook on October 4.
In addition, the profitability of milk production in Ukraine in January-September 2019 was 22.6% up y-o-y, he added.
The index grew against the background of a drop in milk production and a loss in sales markets, which complicated the situation for Ukrainian milk processors since they were caught between increased competition in the markets for finished products and a reduced supply of raw materials.
The expert added the increase in the UMI was due to a fall in the prices of grain and protein meal, rather than due to a rise in milk prices.
According to Yarmak, the decrease in seasonal price fluctuations that have been observed in recent years is intensifying again today, which affects the industry as a whole, since it requires additional financial resources.
In October, conditional profitability of milk production may be affected by rising feed prices, while milk prices may also rise slightly amid a seasonal drop in production, the expert said.
As UNIAN reported earlier, Ukraine saw a 14.1% decline in the profitability of milk production in 2018.
Last year, milk output in Ukraine shrank by 2%, to 10 million tonnes.