Recently, the situation on the market of butter and spreads has changed dramatically. Ukraine once again joined the group of the world’s largest suppliers of butter. This became possible due to surplus of raw milk that appeared as a result of the Russian embargo. This milk and was redirected to production of alternative dairy products, primarily butter. There appeared huge surpluses of goods for foreign trade.
Exports was groing even at the expense of significant reduction in butter consumption in the country. Earlier, when consumption of butter in Ukraine was decreasing, the sales of spreads were increasing. In recent years, the demand for spreads has declined both in the domestic market and from the importing countries. As a result, in seven years production of spreads in has declined two-fold.
Analysts of INFAGRO believe that after this significant reduction, in the coming years stabilization will occur on the spread market, and the growth of butter production is likely to stop. Butter exports will decrease and it is possible that even imports can be restored.
Read more details here.