“Cheese Photo: Informant In the second decade of October, the situation on the cheese market does not please producers. Preservation of small demand and competition with more affordable European cheese complicates the situation for domestic producers. In particular, as noted by INFAGRO, prices for dairy products are decreasing. Factories are in no hurry to reduce production because they do not want to lose raw materials, so the accumulation of finished products continues to increase. Companies […]”, — write: businessua.com.ua
Cheese Photo: Informant
In the second decade of October, the situation on the cheese market does not please producers. Maintaining a small demand and competing with more affordable European cheese complicate the situation for domestic producers. In particular, as noted by INFAGRO, prices for dairy products are decreasing.
Factories are in no hurry to reduce production because they do not want to lose raw materials, so the accumulation of finished products continues to increase. Companies with a more developed promotion in the market try to maintain sales volume with the help of promotions – a significant part of products are sold at a discount. Despite this, they manage to remain profitable due to the high initial prices of the cheese. No new price increases are expected, as they are already higher than the level of European counterparts.
Imported cheese from EU countries enters the Ukrainian market at significantly lower prices, which forces local producers to reduce the price or increase the volume of promotional sales. A further increase in import volumes is predicted, which will create an additional impact on domestic cheese producers. According to forecasts, as many semi-hard cheeses will be imported into Ukraine in November-December as are produced by Ukrainian factories.
In foreign markets, the situation is also becoming more complicated. Due to the decrease in European prices, importers from traditional destinations demand concessions, and export agreements are concluded on less favorable terms.
The price of dairy products on the GDT went down During the Global Dairy Trade, which took place on November 4, the aggregate price index for dairy products decreased by 2.4%. Most of the positions showed a decrease in value, except for skim milk powder, the price of which remained at the level of previous trading — $2,559 per ton.
A slight increase was registered only for two products:
- mozzarella became more expensive by 1.6% — up to $3,306/t
- dry butter oil — by 1% — to $2,808/t
At the same time, other types of dairy products have become cheaper:
- cheddar — by 6.6% (up to $4449/t)
- butter — by 4.3% (up to $6,371/t)
- whole milk powder — by 2.7% (up to $3,503/t)
- dehydrated milk fat — by 1.9% (up to $6,887/t)
The total volume of sold products amounted to 39.5 thousand tons, 146 buyers took part in the auction. The average price was $3,768 per ton. The next GDT trading session is scheduled for November 18.
As reported by the Informant, during the year the main dairy products in Ukraine added approximately 15-25% in value. Currently, average price tags for milk (drinking, 900 ml) are 52-60 hryvnias, sour cream (350 g) – 48-55 hryvnias, butter (200 g) – 100-120 hryvnias.
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