As a result of ban on dairy products a surge of activity is observed on Russian market.

Increase of demand for SMP, WMP, and even 72.5% butter was not observed yet, as it was generally supplied by Russian and Belarusian producers, but prices for cheeses and 82.5% butter started to increase straight away.

It was logically, as the share of import of these products makes more than 50%. Import of 82.5% butter practically replaced Belarusian products this year, indicative prices for which were high.

At the same time, import from Latin America and New Zealand had big share this year. Nearly 14 ths tonnes of butter were delivered from Australia in the first half of the year (20% in total import). 9 ths tonnes were imported from Finland. Large volumes were delivered from Denmark and Latvia. More than 4 ths tonnes were purchased from Ukraine.

Though Belarus was the leader in the first half of the year (22%), it mainly delivered butter of 72.5% fat content to Russia.

Therefore supply of 72.5% butter is still high enough on the market. The prices for products of domestic and Belarusian origin grew, but not considerably.

Understanding that the products from Latin America or New Zealand will be available in October-November at the best, further growth of price is expected on the market. Restriction of import will affect prices of 72.5% butter also.

Panic attitudes are expected on the market the next weeks. Shortage will probably be felt. Further growth of prices for domestic and Belarusian products is inevitable.

Sourse: infagro.com.ua