The next considerable devaluation of the UAH was the main event of February for Ukrainian operators of dairy market. Export of some dairy products became favourable again in conditions of rather stable milk prices. 

The situation is favourable for producers of milk powder, casein, whey powder. Export prices for these goods became much higher than internal. At the same time there is external demand for them.

Changes are also positive for farmers as demand for milk will increase, and it means they can keep milk prices when first seasonal increase of supply will occur.

At the same time the devaluation is very unfavourable for producers of dairy products for domestic market. Milk prices will not fall, so, it is necessary to increase the prices for fresh milk products and cheese further. But in the conditions of stable decrease of purchasing power in Ukraine, sales of those products will fall. In the past such situation would be favourable for cheese makers, but they have not found alternative to Russia sales markets.

And it seems Russia does not plan normal trade with Ukraine at all.

Unfortunately, the activity of Ukrainian milk operators comes to export of milk powder, casein, butter as it was in the 90th. There should be no problems with sales of milk powder (though at not expensive prices, the products will be sold to Asia and Africa), but it will be extremely difficult to sell expected big surpluses of butter. After all, in the 90th, most part of butter was exported to Russia.

Unfortunately, European sale market will not lay a key role in Ukraine and promised by the government market of China does not hurry to give access for our country …

It is impossible for Ukraine to stay without export in any way. 1 mio t of milk have to be exported in 2015. Otherwise it will be necessary to increase culling of cows.

infagro.com.ua