Ukraine,
butter
Exports of butter up 44% in June
In mid-summer the price of butter was growing unexpectedly fast in Ukraine. In the last two weeks it has risen by 15%.
Of course, there are certain reasons for this growth, but seems such rapidity is not justified. Indeed, the prices of the external demand were up and the increase of domestic production was not as high as it was expected. Yet now, in the season, the production of butter still can be safely brought up. The current prices may again become uncompetitive.
Taking advantage of the boom, in mid-July manufacturers raised the price of «Selyanske” butter up to 72−75 thousand UAH/t. For the sweet cream butter (82%) they ask more than 80 thousand UAH/t.
Export prices has risen, but not as much as those on the domestic market. Exporters manage to export "Selyanske” butter for 2500−2700 USD/t, for the 82% product in this region the price is 2800−3100 USD/t.
The export prices seem to rise further, but this will not be the case of domestic ones. These will at best remain at the same level. Manufacturers prefer exporting butter to CIS countries, where prices are higher.
Given the rising prices of external demand, the olume of butter exports in June rose compared with the previous month by 44%, to 1.38 ths. t. In July, it is expected that it will become even bigger.