Ukraine: dairy processing harmed by power outage

Russian missile strikes on Ukraine left the country's dairy industry without electricity, as a result operation of enterprises was stopped.

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The mechanism for marketing products was disrupted, and spot prices for milk in this period can be considered conditional.

According to the analyst of the dairy industry Maksym Fasteyev, recent massive rocket attacks on Ukraine once again showed how important is for the enterprises to have generators. And this will remain relevant in the coming months.

"Some Ukrainian factories, as well as residential buildings, were left without electricity for almost a day. Milk trucks, in some cases, are still waiting for raw milk to be unloaded. It is good that at least the outside temperature helps maintain the quality of products. There is no way to resell raw materials, because all processors are in the same situation. This result of another wave of missile strikes by the terrorist country (already officially) on Ukrainian civilian infrastructure," the expert wrote.

According to him, milk processing companies continue to fulfill their obligation in terms of purchase prices, but there is no demand for the final product. Thus, the current spot price of raw milk in Ukraine can be considered conditional.

Over the past week, the spot value of Ukrainian raw milk compared to EU products was 38% lower, while in the previous week this figure was 34%, and the difference in milk equivalent/butter was 21% (in the previous week -23%).

The indicator of milk equivalent is the recalculation of the current (spot) cost of exchange-traded dairy products into the equivalent of a base kilogram of raw milk, taking into account the costs and production norms of these goods.

Source: Interfax