Ukrainian Dairies meet the new year expectations with fear
New year brought new fears for Ukrainian milk operators. Unlike last years, now there is no understanding of how the market will develop, what products are better to produce this season.
New year brought new fears for Ukrainian milk operators. Unlike last years, now there is no understanding of how the market will develop, what products are better to produce this season.
Ukraine supplied 19,460 tonnes of cheese to foreign markets in 2014, three times down on the previous year (59,000 tonnes).
Because of limited import of dairy products, an increased demand is still felt on the market of raw milk.
The current Russian embargo on countries in the EU and other nations has been discussed thoroughly in the industry as it has been placing downward pressure on global wholesale prices.
Demand for condensed milk grew on the eve of holidays, though not soconsiderably, as previous years.
In the end of the year Belarus could arrange with Russia a renewal of deliveries.
Data on production of dairy products in Russia confirm the general tendencies which are observed in the market: at the expense of reduction in production of fresh milk products, processors were able to increase the production of cheeses, cheese products, milk powder and butter.
Russian business got real shock in the second half of December. There was very sharp collapse of the RUB on “black Monday and Tuesday” (December, 15 – 16).
This year was very difficult for Ukrainian dairy operators, as well as for whole country. It is not surprising, because there are war and economic crisis in the country.
Dairy prices “will remain under pressure” next year despite the prospect of a sharp fall in milk production growth, US officials said, undermining any hopes that a late-year revival in values may signal the start of a recovery.