UKRAINIAN DAIRY MARKET

AGRO PERSPECTIVE «AGRO+ MILK UKRAINE #102 January 26, 2012.

UAH official exchange rate (up to National Bank of Ukraine) against

several foreign currencies     

	25 .01.2012	1 9 .01.2012	12.01.2012	2 9.12.2011
100  US$	798,9800	798,9800	798,9800	798,9300
100 EUR	1034,0399	1025,1712	1016,1428	1042,9232
10 RUB	2,6053	2,5330	2,5213	2,5152
100 KZT	5,3764	5,3876	5,3840	5,4044

As to State Statistics Committee, Ukrainian Dec 2011 liquid milk output has grown to 66,341 MT (up 1% against Nov 2011/up 8.1% as of Dec 2010). 

Ukrainian Dec 2011 liquid milk output leaders were Vinnytsia region, Kyiv region, Zhytomyr region, Dnipropetrovsk region and Donetsk region.

 As of Dec 2011, country biggest liquid milk producers were: Lustdorf Ltd (Vinnytsia region), CJSCBershadmoloko (Vinnytsia region), OJSC Zhytomyrskiy Butter Plant (Zhytomyr region), CJSC DonetskiyCity Dairy Plant ¹2 (Donetsk region); 

As to report, Ukrainian Dec 2011 cream output has grown to 2,478 MT (up 7.88% against Nov 2011/up 41.2% as of Dec 2010).          

Ukrainian Dec 2011 cream output leaders were Zhytomyr region, Vinnytsia region, Dnipropetrovsk region and Zaporizhia region. 

As of January 2010, country biggest cream producers were: OJSC Zhytomyrskiy Butter Plant (Zhytomyr region),  Lustdorf Ltd (Vinnytsia region), Inter Mall Ltd (Dnipropetrovsk region), OJSC Galakton (Kyiv),  Kryzhopilska Subsdiaty of Inter Food Ltd (Vinnytsia region).

In meanwhile, within reporting week Ukrainian domestic/foreign markets’ dairy products prices remained low;  within this week unsold reserves of all dairy products on producers’ warehouses continued growing up.

Within this week domestic market SMP prices have grown to UAH28–31 per kg, up 0.9% against previous week (export — to US$2,800–3,200 per MT, up 0.8%). As of recent, many SMP producers faced financial assets deficit due to SMP low market demand, so within this week they were ready to decline their sale prices to UAH28 per kg in order to receive money as fast as possible. However, those SMP producers which enjoyed high market demand and financial stability (and which assured high-quality SMP output) have fixed their SMP sale prices UAH30 per kg and up within this week.

Within reporting week Ukrainian internal/foreign markets’ WMP demand also remained low; so this week WMP prices remained unchanged as of last week: internal market — UAH36–37 per kg, foreign market — US$3,500–3,600 per MT.

Within reporting week Ukrainian domestic market casein prices ranged within  UAH76–79 per kg (export — US$8,700–9,000 per MT). As of this week, Ukrainian domestic/export markets’ casein demand was low. This week Ukrainian casein output was slack; producers’ unsold casein reserves were low.       

   Within this week Ukrainian domestic market butter prices have declined to UAH38–40 per kg, down 1.3% against previous week (export — US$3,700–4,000  per MT, down 0.8%). 

   As of this week, unsold cheese spreads’ reserves of Ukrainian cheese spreads producers (who are main butter wholesale purchasers) was growing up, resulting in country butter output decline and butter (as cheese spreads’ output raw resource)  purchases’ corresponding lowering.    

   Within this week Ukrainian producers’ unsold butter reserves remained high and so country cheese spreads’ producers tried to force down butter sale prices.

It is to be admitted, despite RF authorities’ recent declarations, within reporting week Ukrainian domestic/foreign markets’ cheese prices remained upon whole unchanged against previous week: foreign market — US$5,750–6,000 per MT, domestic — UAH50–56 per kg. Within this week Ukrainian producers’ unsold cheese reserves were growing up; at same time, domestic/foreign markets’ demand remained slack. Experts say if RF bans Ukrainian cheese import in near future, Ukrainian domestic/foreign markets’ cheese prices will start declining.

Within reporting week prices’ range of Ukrainian home/export markets’ whey has been narrowing. Besides, Ukrainian home market whey demand has declined as both confectioners and canned milk producers refused to purchase whey at such high prices.

Within this week Ukrainian producers’ unsold whey reserves have been growing up;  as of these week, domestic market whey prices have declined to UAH10–10,5 per kg, down 0.5% against previous week; this week whey export prices ranged within US$1,000–1,030 per MT.

 It is to be admitted, one of reasons motivating whey export prices’ decline is that Ukraine lacks special railroad cars adapted to make whey export shipments. Besides, whey export prices’ decline has been caused also by global whey market prices’ lowering. 

Ukrainian dairy products’ domestic market prices,

EXW plant (UAH per MT, incl. VAT )  

Article		26.01. 20 12		1 9 .01. 20 12		Dec 2011	Nov 2011	Dec 2010
		MIN	MAX	MIN	MAX
SMP	↑	28,000	31,000	28,500	30,000	28,400	29,688	23,500
WMP	=	36,000	37,000	36,000	37,000	36,500	36,500	36,000
Block butter (72,5%, DSTU )	↓	38,000	40,000	39,000	40,000	40,500	43,688	40,750
Hard full-fat cheeses (45–50%)	=	50,000	56,000	50,000	56,000	53,000	53,750	45,100
Highest grade technical casein	=	76,000	79,000	76,000	79,000	77,150	75,750	59,300
Whey	↓	10,000	10,500	10,000	10,600	10,300	10,500	-
Whey	↑	9,400	9,800	9,400	9,600	9,400	9,400	-

SMP − Skimmed Milk Powder, WMP − Whole Milk Powder

Ukrainian dairy products’ export prices (US$ per MT)   

Article		26.01. 20 12		1 9 .01. 20 12		Dec 2011	Nov 2011	Dec 2010
		MIN	MAX	MIN	MAX
SMP	↑	2,800	3,200	2,850	3,100	2,950	3,038	2,760
WMP	=	3,500	3,600	3,500	3,600	3,550	3,550	3,770
Block butter (72,5%, DSTU )	↓	3,720	4,000	3,720	4,000	3,882	3,994	5,060
Hard full-fat cheeses (45–50%)	=	5,750	6,000	5,750	6,000	5,875	5,938	5,580
Highest grade technical casein	=	8,700	9,000	8,700	9,000	8,820	8,688	7,490
Whey	↓	1,000	1,030	1,000	1,040	1,050	1,060	-
Whey	↑	910	960	900	950	910	920	-

 SMP − Skimmed Milk Powder, WMP − Whole Milk Powder

06.02.2012