The world butter market is showing significant price fluctuations, and Ukrainian producers are under double pressure due to high inventories and low product profitability. The most expensive butter on the world market is offered by New Zealand, the cheapest is from the USA, and Ukrainian exporters are focusing on the middle price segment of the EU.
According to Infoagro, the difference in product costs depending on the exporting country remains significant, and no global trend has yet been observed. The market fluctuates between periods of price growth and decline, which creates uncertainty for traders and producers.
The highest prices are currently offered by New Zealand producers, while American products remain the most affordable. European butter is in the middle price segment, and it is to it that Ukrainian exporters are focused. However, even the increase in prices in the EU in recent weeks has not yet affected Ukrainian purchasing guidelines: traders are cautiously forming price offers, taking into account the available alternatives within the EU.
The butter market in Ukraine is under significant pressure. Increased warehouse stocks are forcing individual operators to sell products more actively, sometimes even at minimum prices. The increase in the cost of skimmed milk powder helps producers to partially compensate for their losses, which allows processors to maintain financial stability.
Export prices for Ukrainian butter vary depending on the consumer country: deliveries to the EU are made at lower price guidelines, while the markets of the Caucasus are willing to pay more. Moldova usually operates in the middle price range. The domestic market also exhibits price fluctuations depending on packaging and partnership agreements with retail chains, and most sales remain unprofitable.
Because of this, Ukrainian producers are increasingly focusing on packaged products, where marketing and promotional offers can maintain margins. Competition for shelves in stores is intensifying, and sales are actively stimulated by discounts and promotions.
Market participants predict that demand from Western traders may increase in the near future, which will potentially create the prerequisites for increasing purchase prices for Ukrainian butter. At the same time, producers are experiencing a shortage of working capital, although production volumes continue to gradually increase.
agrinews.com.ua
