Ukrainian dairy index showed a record growth in the last 4 years.
Ukrainian dairy index (UMI) in October 2016 showed a record growth over the past four years. This was announced by the economist of the investment department of FAO Andrey Yarmak.
According to him, it happened due to the increase in purchase prices for milk in the background to reduce the cost of feed ration. UMI growth in just one month was 20.4%.
“Last time was growing so fast UMI in September 2013 Due to such a sharp increase, UMI first time since May of this year exceeded the previous year, with just 8.6%. At the same time, he was on 25% lower than the average for October 2011-2015. Therefore, so far to say that the production of milk has been very profitable for producers is not necessary”, – says Andrey Yarmak.
He said that the whole of the current year cumulative UMI was an average of only 5% higher than in the previous year, but almost a third lower than in 2014. Also, it was 24% lower than the average of January-October 2012- 2015.
“The profitability of milk production in professional farms continue to remain one of the lowest in the history of the dairy business is only slightly higher than the previous figures, a very unfortunate season for the sector”, – said economist of the investment department of FAO.
As forecast in the FAO, in the next month, we should expect stabilization of UMI, as further increase in raw milk prices will make its processing is not too attractive.
