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This year production of butter will be significantly lower than last year

 

The situation in the market of butter is rather uncertain. In the world market prices of butter are falling, so, export prices are low. 

At the same time, the prices of butter in the domestic market has noticeably increased. This can only indicate a limited offer, which also does not seem logical considering the height of the production season.

In the domestic market, butter 82% is sold for up to 130−138 thousand UAH/t, and «Krestyanske» butter — up to 113−118 thousand UAH/t. That is, currently domestic price does not stimulate export. After all, Western traders offer mostly no more than 3,900 USD/t for the butter aimed for non-CIS countries. Manufacturers do not want to sell the product for this price, they are looking for opportunities to sell to the post-Soviet countries, where they are paid about 4100 USD/t.

As the prices for butter do not seem logical now, a change in market conditions is possible in July, and most likely domestic prices will have fallen.

The possibility of a certain shortage of butter is confirmed by statistics of its production. In particular, in May the output of butter amounted to 8.8 thousand tons, which is 22% less than in May last year.

In general, for the year, butter production in the country may be a quarter less than last year’s level. This is a very significant fall.

INFAGRO

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