Prices for butter are increased in Russia
In conditions of falling ruble the prices for butter continue strengthening on domestic market.
Certain increase of buying activity is felt on the market, as traders hurry to stockpile the products before final rise of prices, thereby influencing their growth.
Because of increased demand the Belarusians raised the export-floor prices to RUB 175/kg for 72.5% butter and to RUB 185/kg for 82% butter, VAT excluded. Even after that, trade at BUCE was still active.
Lifting of a ban on some New Zealand dairy imports may slightly bring down the demand. The Federal Service for Veterinary and Phytosanitary Surveillance removed temporary restrictions on 29 Fonterra processing plants, following the botulism scare of 2013.
At the end of August, 72.5% butter of domestic and Belarusian origin is already valued at RUB 190-200/kg in Russia, 82% butter – in most cases at more than RUB 200/kg.
Now it is difficult to forecast how long the increase of prices for butter will last. In any case, the rate of growth should slow down, otherwise Russian buyers already will switch over to cheaper spreads.