Economist from the Investment Center of the Food and Agriculture Organization (FAO) of the United Nations Andriy Yarmak said the profitability of milk production in Ukraine in July grew by 33.6% YoY.
“The Ukrainian Milk Index (UMI, conditional profitability of milk production) at commercial enterprises was already 33.6% up in July against the figure reported in July 2018,” he wrote on Facebook.
In addition, the profitability of milk production in Ukraine in July rose by 2.8% from June being 23% up against the average figure for July over the last seven years. At the same time, the profitability of milk production in January-July increased by 16.4%, Yarmak said.
The conditional profitability of milk production increased due to milk price hikes and a decrease in livestock feed prices, he added. At the same time, the profitability may increase in August because of the deficit of milk, which can also cause an even greater decline in dairy exports from Ukraine.
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 tons. (UNIAN/Business World Magazine)