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Ukrainian dairy weekly report

Prices in the domestic dairy market for the reporting period have mainly increased, helped by a slight revival of domestic buyers and seasonally low production. One of the main drivers of the market has been a positive result at the last GDT auction. Strengthening of the EU dairy market has also contributed to the increase. At the same time, activity of buyers from Central Asia has declined significantly amid celebrations of Lunar New Year. Also waiting for the start of the new season and UAH strengthening continue to pressure the market.
Milk powder (SMP/WMP)
Domestic and export SMP prices have increased last week, while WMP prices have not changed. Positive result for this position in the last GDT auction, the strengthening of prices for this product in the EU and seasonally low production have contributed to the rise in price for SMP. At the same time, in February, demand of buyers from Central Asian countries for these positions has decreased significantly amid high supply from Belarus.

Butter

Domestic butter prices have not changed over the reporting period, however, many producers believe that butter may rise in price significantly in the next two months. Such forecasts are explained by the fact that there is seasonally little butter production in the country, and demand for this product is strong in both domestic and export markets.

Dairy spreads

Domestic dairy spreads prices have slightly strengthened under the influence of forecasts for an upward price trend for butter. In addition, recently domestic demand for this position has also increased slightly.

Casein

Domestic and export casein prices have risen significantly amid strengthening of this position in the last GDT auction. In addition, production of this product is seasonally low, which also has a positive impact on this market segment.

Cheese

Domestic cheeses prices have not changed. Seasonal increase in the cost of raw milk and low activity of cheese makers continue to have a positive impact on this market segment. In addition, inventories are relatively low, which most likely will allow the market to demonstrate a positive trend soon. At the same time, it is worth noting that many producers are already actively preparing for the start of the new season.

Whey

During the reporting period, whey prices have decreased on the export market and significantly strengthened in the domestic market. Low inventories after active shipments under previously concluded contracts have contributed to the rise in prices on the domestic market, while the export market has «sunk» due to the low activity of foreign buyers — Chinese market is almost absent due to holidays, and Central Asian countries get more favorable offers from Belarus.

12.02.2019


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