Despite the increase in butter production in Ukraine, its consumption level within the country has significantly decreased. Experts call the main reason for this high retail prices, which remain unaffordable for many consumers. The lack of large-scale promotional programs in retail chains only exacerbates the situation.
This is reported by the industry analytical agency "Infagro". According to their data, manufacturers are facing difficulties in forming a pricing policy due to limited export opportunities, because only butter with a fat content of 82% can be supplied to EU countries. This complicates the situation for sellers of the popular "Peasant" butter in Ukraine, who cannot compensate for the decrease in domestic demand with export deliveries.
The main external markets for Ukrainian butter remain Moldova and Kazakhstan, but the volumes of such deliveries are relatively small. Importers from these countries, knowing about the weak demand in the domestic market of Ukraine, are in no hurry to buy products at high prices. As a result, some Ukrainian producers are forced to make price concessions to maintain sales.
At the same time, export indicators are showing positive dynamics. In February, butter shipments abroad increased by a third compared to January. It is expected that in March, exports may reach record monthly figures since 2022.
It is important to note that the European Union does not plan to introduce quotas for the import of Ukrainian dairy products. Ukrainian butter and dairy products are not included in the list of sensitive goods - "sensitive" goods for which import restrictions are possible. This creates additional opportunities for exporters, although the domestic market remains weak.
In general, the dynamics of exports of Ukrainian products have changed in recent years. In 2022, the total value of exports was $44.2 billion, in 2023 it decreased to $36.2 billion, and in 2024 it increased to $41.7 billion. At the same time, the average export price of products is decreasing, which indicates a change in global market trends. One of the factors that influenced trade volumes was the blockade of Ukrainian ports, which hit the export of metallurgical products and raw materials.
agrinews.com.ua