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.
A proposal to extend private storage aid (PSA) for butter and SMP will be voted on next week by the European Commission according to DairyCo.
Situation with demand for dairy products is complicated in Russia – prices are growing, people began to save expenses.
Despite Russian ban on import, there are no big surpluses of milk on Ukrainian market. The situation is rescued by seasonal reduction of production.
Rabobank Dairy Research specialist Sandy Chen told members of the Irish trade delegation visiting China this week that it will take up to 12 months for the Chinese market to strengthen significantly.
In conditions of total trading ban of Russia and price decline on the world dairy market, only seasonal reduction of milk production”rescues” the Ukrainian operators.
In October, raw milk market of Ukraine entered real autumn season. Production is decreasing and the prices are growing.
While world dairy market is in crisis conditions, Belarusian market develops not bad.
GLOBAL – Low dairy prices are set to be prolonged in the absence of a Chinese white knight and a likelihood of strong milk production into next year, says Rabobank.
Autumn has not brought good news to Ukrainian dairy producers. Unfortunately sham truce in the east has not resulted in the end of trading war of Russia against Ukraine.
