Ukraine: production of milk powder has significantly decreased and will continue to decline

The drying season in Ukraine is almost over. Several dairies still remain in operation, the ones that use raw milk produced by rural households keeing cows. The price of this milk has not particularly risen since summer. – INFAGRO

The profitability of the milk powder production is very low, and not so much because of the low cost of the milk powder itself, but because of the problems with sale of butter. As a result, the supply of milk powder in the country is rapidly falling, which allows sellers to gradually increase its price despite the negative trends in the global market.

Most often skim milk powder is now sold on the domestic market. Such sales are now more interesting than exports. In Ukraine SMP is currently offered at 60-67 thousand UAH/t.

The market of whole milk powder in Ukraine is more stable. Some buyers continue to pay for WMP 90-95 thousand UAH/t. The range of export prices for this product is very wide.

Given the limited supply of powdered milk, prices for it in Ukraine in the near future will not fall. But one should not count on a substantial price increase either, because for 70 thousand UAH/t it is possible to buy any amount of high-quality Belarusian SMP. Therefore, this will be the maximum bid price of domestic skim milk powder in the near future.

Production of milk powder has decreased significantly and will continue to decline.

INFAGRO

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