Exports of dairy is miserable in Ukraine, but raw milk’s rise continues
With Festive season in sight, the dairy market of Ukraine traditionally becomes more active in the middle of December. At this time the prices for milk and dairy products usually grow, due to seasonally low production volume.
In spite of this export of dairy products was essentially decreased in November, because of strongly decreased demand. Only canned milk was actively exported from Ukraine. It is inappropriately to compare trade figures with last year’s. For example, sales of cheese decreased by many times. At the same time, export of milk powder and casein was higher.
Import of dairy products remains very low, because of clear reasons, though cheese and Belarusian condensed milk are still delivered.
Export of dairy products will fall even more in December.
Increase of milk prices occurs rather unusual this autumn. This season they grow chaotically, almost without coordination by participants of the market and under influence of different factors.
It firstly means that demand remains rather high on the market. Secondly, because of promptly changing economic and political situation, the operators have different financial and operational possibilities which do not allow to make common cause on the market.
In the middle of December average base price for milk from large agricultural enterprises makes UAH 4.50-4.80/kg. Many big agroholdings value milk already at UAH 5.00/kg and more.
Prices for milk from households are gradually strengthened to UAH 3.00/kg. The prices are at UAH 3.00-4.00/kg in the southern regions for long time already (the closer to Crimea, the more expensive).
Trading activity will be observed until New Year’s holidays on the market. Then the market will be very weak till the second half of January. Therefore the milk prices will be almost not changed.