AGRO PERSPECTIVE «AGRO+ MILK UKRAINE #75 July 14, 2011
Within reporting week Customs Union has imposed temporary limitation on exports of 6 Ukrainian dairy producers’ ready products to Customs Union countries due to these producers (incl. Industrial Association Molis Ltd and Molochniy Dim Ltd) having not confirmed their having had completely fulfilled Customs Union demands.
Customs Union has given 1 month time to these producers to produce materials proving liquidation of drawbacks found within Customs Union inspecting and Ukrainian Veterinary Service guarantees on these materials’ compliance with Customs Union veterinary and sanitary demands/norms.
Besides, Customs Union has also imposed temporary limitation on ready products’ exports to Custom Union of 12 Ukrainian dairy producers which didn’t go through Customs Union inspections (incl. OJSC Zvenygordskiy Cheese Integrated Plant, OJSC Zhashkivskiy Butter Plant, OJSC Litynskiy Dairy Plant, OJSC Ichnianskiy Canned Milk Integrated Plant and OJSC Kupianskiy Canned Milk Integrated Plant.
It is to be admitted, Customs Union has also decided not to include into Ukrainian exporters’ list 10 Ukrainian dairy producers (incl. Wimm-Bill-Dann Ukraine and its Kharkiv subsidiaries) which have already passed Customs Union inspections.
As to State Statistics Committee report, Ukrainian May 2011 cheese spreads’ output has lowered to 4,904 MT (down 20% against Apr 2011/down 17.8% as of May 2010).
As to Committee, within May 2011 cheese spreads’ output leaders were Zhytomyr region, Cherkasy region, Poltava region, Volyn region and Vinnytsia region; as of May 2011, highest cheese spreads’ outputs were reached by Andriyivskiy Butter and Cheese Plant Ltd (Zhytomyr region), Tehmolprom Ltd (Poltava region), OJSC Khorolskiy Baby Food Canned Milk Integrated Plant (Cherkasy region) and CJSC Ratnivskiy Dairy Plant (Volyn region).
Committee says Ukrainian May 2011 cheese import has declined to 942,74 MT, down 3.1% against Apr 2011. Ukrainian Jan-May 2011 cheese import totaled 4,358.65 MT. In May 2011, Ukraine imported cheese mainly from RF (52.1% total) and Poland (16.3%).
Ukrainian May 2011 cheese export has declined to 6,169.57 MT, down 7.7% against Apr 2011; Ukrainian Jan-May 2011 cheese export totaled 29,646.20 MT. In May 2011, Ukraine shipped out cheese mainly to RF (86.2% total).
Besides, as to Committee, Ukrainian this year May non-flavored yogurts’ output equaled to 156 MT, up 10.6% against this year Apr 2011 (but down 50.3% as of last year May). This year May 2011 non-flavored yogurts’ output leaders were Kherson region, Poltava region, Kyiv region and Khmelnytskiy region; as of this year May, highest non-flavored yogurts’ outputs were reached by CJSC Dairy Plant Rodich (Kherson region) and OJSC Kremenchutskiy City Dairy Plant (Poltava region).
Ukrainian this year May flavored yogurts’ output has hoisted to 8,115 MT, up 20.3% against this year Apr 2011/up 10.7% as of last year May). This year May 2011 flavored yogurts’ output leaders were Kherson region, Dnipropetrovsk region, Lviv region, Kyiv region and Poltava region.
Committee says Ukrainian Jul 01//11 cows’ number has declined to 2.66 mn heads (down 3.7% against Jul 01/10). It is to be admitted, within 2010 Ukrainian cows’ number lowered by 2.2% against 2009; as of Jan 01/11, Ukrainian cows’ number totaled 2.68 mn heads.
In meanwhile, within reporting week Ukrainian domestic market SMP prices have declined to UAH30–33,5 per kg, down 1.6% against previous week; however, this week domestic market SMP sale rates remained insignificant.
Within this week SMP export prices ranged within US$3,000–3,300 per MT.
Within reporting week domestic market casein prices fluctuated within UAH78–79 per kg; this week casein export prices have sagged to US$8,950–9,150 per MT, down 1.6% as of last week.
As of this week, domestic market butter prices remained stable — UAH44–46 per kg; this week butter export prices ranged within US$3,900–4,000 per MT. As of this week, butter was exported just in small lots.
As of this week, domestic market cheese prices fluctuated within UAH43–46 per kg. Within this week Ukrainian companies exported cheese just in small lots; cheese export prices ranged within US$5,050–5,500 per MT.
Within this week WMP export market prices remained US$3,400–3,600 per MT,
unchanged against previous week; this week WMP domestic market prices fluctuated within UAH35,5–36 per kg.
It is to be admitted, within this year Ukrainian domestic market dairy products’ prices didn’t go through usual seasonal decline; within last 6 months country dairy products’ domestic market has been dominated by following tendencies:
within this year Apr dairy products’ prices have lowered (averagely by 5–14% against this year Jan-Mar) due to demand decline;
within this year mid May butter prices have grown by 7.9–9.1% against this year Apr producers’ sale price (UAH32,870 per MT, incl. VAT) due to Ministry of Agrarian Policy and Food decision to make 18,000 MT butter/6,000 MT milk powder domestic market intervention purchases.
Since this year May and until now, Ukrainian domestic market dairy products’ prices continued growing up due to market demand activation and energy resources’ prices growth. However, dairy products’ prices growth has been motivated mainly by domestic raw milk prices’ boost (though Ukrainian summer periods are traditionally characterized with an opposite problem — that is, prices’ fall caused by offer boost). As of this week, Ukrainian domestic raw milk purchase prices for high-quality milk produced by specialized dairy producers have exceeded UAH3,50 per liter. It is to be admitted, raw milk purchase prices’ growth is to be explained not only with all abovementioned factors, but also with total Ukrainian cows’ number shortening.
