Profitability of milk production in Ukraine has increased for the first time since the beginning of the year

"This is the first increase in UMI in June in the entire history of our observations since 2011, because, as a rule, June is not the best month for manufacturers. Last year, for example, the UMI decreased by 4.4% in June", said Andrey Yarmak.

According to him, despite the price decrease of 1.2%, this decrease was offset by a decrease in the cost of concentrated ration by 1.7%, mainly due to a drop in prices for sunflower meal.

"So, June was the first month of the year when the UMI did not decline — before that, it fell every month in 2020. Despite this, in the aggregate, the first half of the year was not so bad for professional milk producers — the profitability exceeded last year's by 3.4% and was the highest in the last 6 years! Only in 2014, the first half of the year brought large profits to manufacturers", the expert said.

He explained that profitability of milk was higher due to record high returns in the second half of 2019.

According to Andrey Yarmak's forecasts, in July, as a rule, the beginning of seasonal growth of UMI is marked. This year, in his opinion, there are many reasons for growth — both in the foreign and domestic markets.