December 2018

General Information

Dairy producers began to sum up 2018 year in December. There is an opinion among
experts, that Ukrainian raw milk producers increased profitability in 2018. In general,
2018 can be considered successful for dairy business in Ukraine, but still far from ideal.
Dairy producers are waiting for more successful in 2019.

Raw milk - trends

The raw material market in December was at a stable level with regard to prices. The
average price from farms in December was 0.34 USD per kg. Threats to the market were
strong snow falls, a lot of raw milk could not get to the producers. But due to the coherent
work of processors and producers, the problem was avoided.

Butter

The promising (in the first half of the year) butter market has disappointed Ukrainian
exporters this year, demand and price is low at the end of the year. Butter with a fat
content of 72.5% is exported for 3400-3600 USD per ton. Butter with a fat content of 82%
is sold on average 3800-4000 USD per ton.

Casein

At the end of the year, the supply of Ukrainian casein is very small. The stock are roughly
200 tons. Despite this, traders do not accept price increase and continue to buy Ukrainian
casein at 5000-5200 USD per ton.

Our production
in December
Butter
37
Casein
0
Cheese
107

Our forecast for January

In the first half of January, the raw milk market is expected to be stable and calm. The raw
milk price should remain at the same level. But in the second half, Ukrainian dairy
producers will try to reduce the price. Some operators will have a raw milk surplus. There
are no prerequisites for butter export market increase, the price is likely to remain at the
same level as in November. Due to the large number of holidays, the dairy products
consumption in the domestic market will be low.

* - the price for 1 liter of high-quality milk. (fat 3.4%, protein 3.2%)

Brief December (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.

Exchange rate
Exchange rate change, 1,44%
Fluctuation rate, 3,23%