Ukrainian butter fills a price
Import of butter in Ukraine has become unprofitable – the purchase prices seriously increased. The import of butter from Belarus, which in 2009 was the main supplier of this product in Ukraine, has almost ceased. The differences in prices on Belarusian butter in summer and autumn of 2009 makes more than 55%. In summer, the purchase price of 1 ton of butter fat content of 72.5% was $ 2100-2150. Wholesale export price of a ton of Belarusian butter of fat 72.1% is not less than $ 5100 per ton, fat 82.5% - $ 5400 per ton.
Thus, the purchases of Belarusian butter at such price do not arrange Ukraine, as at the internal market price for butter (fat 72.1%) makes 4000-4200 UAH/t.
During October-November, purchase of butter from Belarus virtually ceased, and producers, which in most cases import products realized butter, bought earlier in summer period.
During the first 9 months of 2009, 15.6 thousand tons of butter were imported to Ukraine. The import of butter to Ukraine decreased from July 2009: July – 2 thousand tons, in August – 1.8 tons, in September – 700 tons, and in October – 800 tons.
Ukraine also imports butter from Finland, France, Belgium and other EU countries, however in negligible quantity. Over the past few months (September-October), imports amounted to approximately 540 tons worth $1 million 601 thousand.
Ukrainian producers cannot fully provide the Ukrainian market with butter for a number of reasons. In particular, due to lack of raw materials due to the reduction of livestock, insufficient financing of industry, lack of government support.
Producers warn: if the revival of dairy industry will not begin in the near time, Ukraine will be forced to import more dairy products and raw materials from abroad, thus becoming dependent on product prices in world markets.