August 2018

General Information

In August, there were talks about raw milk market. The raw milk price should rise, but there are no special preconditions for this except seasonal factor. Export prices remained at the same level. The consumption of dairy products on the domestic market is low.

Raw milk - trends

The raw milk amount has decreased due to seasonality. The raw milk price has increased without special preconditions for this. Raw milk producers complain about low profitability. But since the hryvnia dropped, the price in US dollars remained at the same level. The average price from farms in August was 0.32 USD per kg.

Butter

The dynamics of the butter price this year is negatively different from last year. At the end of summer, the butter price is 20% lower than in 2017. Two factors have affected this. The butter excess on the Belarus market and a decrease in demand from Turkey due to the drop in lira.
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 4000-4200 USD per ton.

Casein

Casein production has already begun to decline. The main factor is the reduction in the amount of cheap raw milk. The price for casein was close to 5100-5400 USD per ton.

Our production
in August
Butter
151
Casein
87
Cheese
34

Our forecast for September

In September, the raw milk volume is expected to decrease. The raw milk price will increase 5-10%. The consumption of fresh dairy products in Ukraine will seasonally increase, education will start in schools and kindergartens. Casein production will decrease seasonally. Considering the trends in the world market, the price of Ukrainian butter will remain at the same level, perhaps in late September, maybe, we can expect a slight increase.

Brief August (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, 4,4%
Fluctuation rate, 4,4%