Prospects for the Ukrainian butter and cream market

Ukrainian producers of cheese and butter intend to work actively even during the holiday season due to low stocks. This was reported by Maksym Fasteyev, partner of Infagro projects.

The expert predicts that in the coming months there will be an increase in imports of liquid cream and monolithic butter, aimed at stabilizing demand and prices for raw materials in Ukraine.

The reason for this dynamic is the imbalance between supply and demand of raw milk caused by the events of last year, in particular, Russia's invasion of Ukraine. This imbalance generated additional volumes of milk fat, which translated into high exports of Ukrainian butter.

Fasteyev notes that this year, especially in the second half, with the recovery of consumer sentiment, Ukraine is again facing a shortage of milk fats. This has led to an increase in the purchase price of raw milk by almost 25% in four months. The volume of Ukrainian butter exported in 2023 is expected to halve compared to 2022.

Imports of liquid cream and butter could be a way to offset this imbalance, but the sharp jump in global prices and the blockade of the Ukraine-Poland border make this option difficult.

Currently, prices for dairy fats such as butter, liquid cream and raw milk in Ukraine continue to rise, while the EU is experiencing a reverse trend and prices for liquid cream and butter in Western Europe have already fallen by 5%.