Ukraine can regain the position as one of the largest exporters of milk powder
Due to national currency devaluation, Ukraine turned to be one of the cheapest world producers of milk powder and casein. Consequently, Ukraine can regain the position as one of the largest exporters of milk powder.
Over the last year, Ukraine exported 54,900 tons to the foreign markets, demonstrating a drastic increase (+63.4%). In Ukrainian exports, the share of Russia and Kazakhstan accounted for 70%. This growth was driven by Russian food embargo. The Ukrainian producers shifted to exports of milk powder, butter and cheese production. In late 2014, Russia imposed embargo on all Ukrainian dairy products. It resulted in dairy market overstocking. The Ukrainian producers tried entering new markets by producing milk powder.
Currently, Ukrainian exporters are regaining the lost export markets of Africa and Asia and entering new markets by means of price fall. World prices for milk powder reach USD2-2.3 thousand per ton, depending on quality. The selling price of Ukrainian enterprises can amount to USD1.8-1.9 thousand per ton, receiving high revenues. As selling old milk powder, Ukrainian exporters will increase both domestic and export prices in terms of dollars. World trends of milk powder market provide for this.