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09
11.2018

October 2018

Radyvylivmoloko brief market review.
Trends in the dairy market in Ukraine.

General Information

This autumn has come. The raw milk price is likely to reach its maximum. The export market is not favorable for Ukrainian producers. The dairy products consumption in the domestic market remains low.


Raw milk - trends

The raw milk price increased in the second half of October, although there was no precondition for this. This was due to raising the upper price limit from farms. The average price from farms in October was 0.34* USD per kg. The State Budget of
Ukraine t 2019 does not include any assistance for Ukrainian raw milk producers.

 

Butter

In the beginning of the season, butter was considered the most promising commodity for export. But now the prices for butter are low, the demand is low, and stocks in warehouses of Ukrainian producers are still high. Butter with a fat content of 72.5% is exported for 3400-3500 USD per ton. Butter with a fat content of 82% is sold on average 3600-3800 USD per ton.


Casein

In spite of a sharp decline in the casein production in Ukraine, traders continue to cut the prices. Most of them estimate the Ukrainian casein at 5000 USD/ton, sometimes 5200 USD/ton. Such a situation will only accelerate the completion of the casein season in Ukraine.
*the price for 1 liter of high-quality milk. (fat 3.4%, protein 3.2%)

 

Our production
in October
Butter
85
Casein
24
Cheese
68

 

Our forecast for November

In November, the raw milk amount will reach its minimum. The raw milk price should remain at the same level. There are no precondition for raising the price. Casein production will decrease seasonally. Most likely it will be the last month of casein production for the majority of producers in Ukraine. The butter price is likely to remain at the same low level. Big demand for Ukrainian butter is also not expected. Ukrainian producers will be forced to sell butter at low prices until the stocks are lowered till certain amount.

 

Brief October (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, 0,25 %
Fluctuation rate, 1,6 %

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