Unrealized exchange commodities, growing losses in dry milk and butter production, and falling butter prices in Europe and worldwide are holding back the growth of raw milk prices in Ukraine, according to the Association of Milk Producers (AMP).
The industry association noted that the average purchase price of extra-grade milk as of October 6 was UAH 17.45/kg excluding VAT, which is UAH 0.1 more than in the previous month, Prices for premium milk (UAH 17.15/kg excluding VAT) and first-grade milk (UAH 16.80/kg excluding VAT) remained unchanged.
“Prices also remained stable compared to the results of monitoring in the second half of September. Compared to the same period last year, the price of extra grade milk decreased by 25 kopecks,” experts noted.
According to AVM analyst Georgiy Kukhaleishvili, many factors are holding back the growth of raw milk prices in Ukraine. Currently, the supply of exchange goods on the domestic market exceeds demand. Milk processing enterprises have been working at full capacity since mid-August after the suspension of milk exports to the EU following the exhaustion of quotas. At the same time, demand on the domestic market remains low due to a decrease in the number of consumers and a reduction in the purchasing power of the population. Sales of dairy products in supermarkets are growing only when promotional discounts are offered. Warehouses in Ukraine are almost completely filled with exchange goods, which puts pressure on milk prices.
According to the ABM, the situation with butter in the EU is indicative, as it has fallen in price by 24% over the past two months due to the arrival of American butter on the European market at a price of EUR 5,000/ton. In such conditions, European traders are not interested in buying Ukrainian butter, which costs more than American butter. The increase in electricity costs affects the growth of the cost of Ukrainian products and makes it difficult to compete with Americans in the European market, analysts explain.
In Ukraine, in the second half of October, there is a possibility of a maximum price reduction for extra-grade and higher-grade raw milk due to the growing unprofitability of dry milk and butter production at milk processing enterprises and a decline in world prices for butter, they predict.
“However, on October 13, new quotas for the export of dairy products to the EU for Ukrainian companies are expected to be signed. Quotas for butter have increased from 5,000 tons to 7,000 tons, as well as for dry milk. Dairy exports to the EU are expected to resume on October 28, after the quotas come into force in 15 days, which may curb the fall in raw milk prices in Ukraine,” the ABM notes.
Competition in the Ukrainian laboratory diagnostics market is intensifying, which could lead to price wars, said Mykola Skavronsky, deputy CEO of Sinevo Ukraine, in an interview with Interfax-Ukraine.
“The number of laboratories has increased after COVID-19, and there are fewer people in the country, so the cost of attracting customers has increased significantly. This could lead to dumping, discounts, and even an increase in drug kickbacks,” he said.
Skavronsky added that the cost of services has also increased due to the devaluation of the hryvnia and the weakening of the dollar against the euro, which forced the company to raise prices by 10-15%.
Sinevo Ukraine is part of the Medicover Group, an international holding company in the field of medical and diagnostic services, whose shares are listed on the Stockholm Stock Exchange.
The Ukrainian baking industry operates in a highly competitive environment with low profitability, according to Oleksandr Taranenko, president of the All-Ukrainian Bakers Association.
“We bakers only know about 10% profitability from stories. Most companies operate with a margin of 5%, and sometimes even lower. At the same time, costs are constantly rising. For example, the rise in electricity prices has added 1% to the cost price, and this increase cannot be immediately passed on to the price – it takes months,” he said.
According to him, this is why forecasts of a 15-20% increase in the price of mass-market bread are not related to manufacturers’ desire to increase profits, but to the need to compensate for increased costs.
“Bakers are forced to raise prices. This is not an attempt to make a profit, but an attempt to survive. When production costs rise and prices cannot be changed quickly, companies simply go into the red,” Taranenko emphasized.
The Verkhovna Rada Committee on Finance, Tax and Customs Policy has announced a competition for a vacant position on the Council of the National Bank of Ukraine (NBU), setting the deadline for applications as May 22, 2025.
“We had a meeting with the IMF, and they expressed their position on the need to fill the vacant position,” said committee head Danylo Getmantsev during the meeting.
He said that the deadline for accepting applications from candidates for the position of member of the National Bank Council is one month, until 4 p.m. on May 22, 2025.
“We will listen, conduct a selection process, as we always do – openly and transparently,” Getmantsev added.
As reported, in the memorandum of the extended financing program with the IMF, updated after the seventh review, the Ukrainian side noted that it plans to fill the vacant positions in the NBU Council by the end of April 2025.
In addition to the head of the NBU, the National Bank Council has eight other members: four are appointed by the president and four by the Verkhovna Rada for a term of seven years. Currently, Igor Veremiy and Vasily Furman have been appointed under the president’s quota (in June and November 2022), and Vasily Gorbali, Anatoly Barsukov, and Elena Shcherbakova have been appointed under the Verkhovna Rada’s quota (in September 2020 and December 2022).
COMPETITION, member of the NBU Council, VACANCY, Verkhovna Rada Committee
The Food and Agriculture Organization of the United Nations (FAO), together with the Ministry of Agrarian Policy and Food of Ukraine and the Ministry of Education and Science of Ukraine, announce the launch of an open call for proposals for the development of online training courses. This initiative is funded by Ireland through the EBRD Small Business Support Facility and FAO, SEEDSwrites .
The purpose of the competition is to develop online training courses to overcome the shortage of professional knowledge and skills in the agricultural sector, food and processing industry with a focus on small and medium-sized businesses (SMEs) in Ukraine. The courses cover a wide range of topics, from livestock and crop production to processing and marketing technologies.
Applications are open to scientific, educational, and non-governmental organizations that can create a complete training product, including videos and tests to test knowledge. Priority will be given to applicants with proven cooperation with businesses in the industry.
Before filling out the application, potential participants should familiarize themselves with the courses already published on the AgriAcademy educational platform(https://agriacademy.org/courses-catalog/) to avoid possible duplication of topics and materials.
The main application criteria and requirements for creating training courses can be found on the official website of the AgriAcademy platform
The application deadline is January 5, 2025.
All applications must be submitted online through the application form.
The best proposals will receive funding of up to USD 15,000 to create course materials.
As part of the online meeting, the organizing team will make a brief presentation of the competition and will be available to answer questions from participants. The workshop is scheduled for 16:00 Kyiv time on November 20, 2024. To participate in the seminar, you need to pre-register here.
This competition opens up new opportunities for educational and research institutions, contributing to the development of Ukrainian agribusiness and the integration of best practices into SME training programs.
Readmore about the competition and terms of participation on the official website of AgriAcademy
The Ministry of Education and Science invites architects to take part in a competition for school renovation projects.
“Teams of architects can submit design ideas for the competition. The design project developed by the winner of the competition will be available for free to all communities. Its availability will allow donors to speed up decision-making on financing school reconstruction, and communities to save time and money,” the ministry’s press service said.
It is noted that the authors of the three best project ideas will receive awards ranging from 8 thousand to 12 thousand euros, and the winner of the competition will sign a contract for 300 thousand euros, which provides for the development of an adaptive school design project.
According to the rules, a team wishing to participate in the competition must consist of at least two architects: one must be authorized to practice in Ukraine and the other must be authorized to practice abroad.
According to the report, the School of the Future for Ukraine project was initiated by the Lithuanian government in partnership with the State Agency for the Restoration and Development of Infrastructure of Ukraine with the assistance of the Ministry of Education of Ukraine.
