Cardinal changes occur in Ukrainian cheese branch. Operators considerably reduce the production. 

Almost nobody work for stockpiling as it was last years. Plants first start production, and then stop it, depending on sale of stocks. It is not surprising, as export is scanty, internal consumption does not grow either.

Sellers try to maintain the prices for cheese at stable level on home market. At the same time there are many various bargain offers. Plants sell traditional cheeses at UAH 56000-60000/t to distributors. They try to keep the prices unchanged for trading networks, at UAH 68000-73000/t.

If there is possibility for export, vendors agree to reduce the prices. It is quite logical in conditions of Russian embargo and decline of prices on world market. Cheese is contracted at USD 5000-5700/t to the countries of former USSR.

Trade with Kazakhstan was somehow renewed recently, but still in August foreign trade was absolutely failed for Ukrainian cheese makers. Ukraine exported 340t of cheese, which was by 13 times less than in August 2013. Situation was better for producers of cheese products, but successes may betemporary.

After last negotiations between Kiev and Moscow there is a hope that trading war can be temporarily suspended.

Source: infagro.com.ua