Ukraine is becoming a strong exporter of butter

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Despite the hardships of the long-lasting crisis of the global dairy market, the projections for the coming decade are optimistic. In particular, the world trade of butter is expected to grow.

According to the FAO and OECD data, in the next ten years the world dairy trade will be growing, but the growth rate will differ depending on the product. The annual growth of trade will be 2.3% for all dairy. For SMP it will be 2.2%, for WMP 1.8% and for cheese and butter 2.1%.

Much of this growth will be due to the increase in exports from the United States, European Union, New Zealand and Australia. By 2025 these four regions together will account for 70% of global cheese exports, 75% of WMP, 80% of butter and 86% of SMP.

Despite the challenges caused by the downturn in the Ukrainian economy and difficult geopolitical situation, there are also changes in the structure of dairy production in Ukrainian dairy industry. These changes are closely linked to global dairy market situation which impacts both domestic production and export trade.

The loss of the Russian market by Ukrainian cheese-makers caused a significant increase in production of butter. At the same time the output of spreads has shrunk. After several years in the status of the importer of butter, Ukraine is returning to the world market trade as a strong exporter of butter now selling more than 40% of export volumes of the product to non-CIS countries.

The Ukrainian market of butter and spreads is now on the threshold of a great change. Many problems arise, but there are also many opportunities. This makes the dairy market operators seek effective ways of doing business.

INFAGRO analytical agency released a new report “The market of butter and spreads – 2016” which gives a detailed picture of the market of these products in Ukraine, the world and the countries of the Customs Union.

INFAGRO

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