April 2018

General Information

There was practically no spring in Ukraine this year. After a cold winter, in April a hot summer began immediately. As a result, the raw milk amount has increased. Dairy producers were not ready for this. Ukraine almost  stopped exporting analog cheese (to Russia). Belarus is the main competitor of Ukraine on the world butter market.

Raw milk - trends

As we have already mentioned, the raw milk amount increased in April. Maximum milk intake is expected in May. In the first quarter, the raw milk amount increased by 3.5% compared to last year. The average price from farms in April was 0.34 USD per kg.

Butter

Despite the positive trends of the world butter market, traders are in no hurry to buy Ukrainian butter. Butter with a fat content of 72.5% is exported for 3500-3600 USD per ton. Butter with a fat content of 82% is sold on average 4000-4200 USD per ton. To the European Union countries such butter can be sold at 5300 USD per ton.

Casein

In the first quarter, Ukrainian casein producers produced 20% less casein compared to last year. It is early to say whether Ukraine produces more casein in 2018 or less, compared to 2017. Further production growth is expected in May. The price for casein was close to 5300-5400 USD per ton.

Our production

in April

Butter

135,8

Casein

65

Cheese

60

Our forecast for May

As always, May will bring us maximum raw milk intake. Producers will start producing more casein compared to April. The casein prices will reach it’s minimum level. The raw milk price will be also at its minimum. Even though it will be high season, experts say that Butter price should not decrease since it is already very low compared to world prices.

Even though Russia is not dealing with Ukraine directly, President’s elections in Russia are indirectly influence dairy market in Ukraine. And as for today, experts say, that this influence is one of the main. So, after new president is confirmed in Russia, new circumstances could occur.

Brief April (pdf)

This information booklet is intended only for customers and partners of Radyvylivmoloko LLC. Not for public or commercial use. All the information, mentioned here should be considered only as and opinion of Radyvylivmoloko staff.