February 8, 2013

Due to probability of a price increase for milk as a raw product, Russia's prices for dairy products may grow at shops this year.

Deputy Director General of the Ukrainian Agrarian Confederation Oleksandr Yaroslavsky has made such an assumption at a press conference "Whether Prices Changed for Consumer Basket of Ukrainians? What should be Expected in 2013?" held on Thursday, a UKRINFORM correspondent reports.

"This year, a rise in price for milk as a raw product should be expected within 15%, while over two previous years, a reverse process took place in Ukraine and the prices were falling," Yaroslavsky said.

According to him, everything will depend on the world markets, "Currently, a trend is underway toward a price rise. When the products rise in price, exporters become more active, i.e. more export will be from the country. The more is exported, the less is left, i.e. the higher is the price."

He reminded that on the world markets last year, prices for dairy products were at a rather low level, "Actually prices fell on the whole range of dairy products, which testifies to the fact that producers work with minimum profitability."

Yaroslavsky also specified that prices for cheese, butter and dry milk, which go to exports, also have a trend toward growth. "Therefore, I do not rule out that in 2013, exporters will actively purchase milk from population and enterprises, and as a result of competition, purchase prices will grow too, which in turn will tell on prices for ready-made dairy products," he summed noting that 22 kilogrammes of milk are necessary for making one kilogramme of butter.