Milk Powder and Butter prices increase in Russia is not justified

Serious agiotage on Russian dairy market by reason of import restrictions strained already difficult situation for a few weeks.

The problems with European cheeses and whey powder were really reasonable, but concerning other products – traders just used panic of operators.

The players probably only made themselves safe, as stocks of butter and milk powder are sufficient on the market of Russia now.

Hopes for deliveries from South America are not justified yet. Additional deliveries from New Zealand to Russia may be permitted not earlier than in winter. Argentina has problems with inflation now and the government tries to maintain internal prices and limits export in every possible way.

Russian market of milk powder proved to be the least dependent on import restrictions.

It is not surprising, as earlier demand was basically supplied by domestic, Belarusian, well, and Ukrainian products.

For January-July Russians produced 85 ths tonnes of milk powder, that was 40% more than a year ago.

Therefore stocks of the products make about 20 ths tonnes in Belarus, the same as they were a month ago. They will not be sold out for certain period as in Russia it is possible to find milk powder at the price below Belarusian indicatives.

There are no powerful reasons for growth of the prices the next weeks. At the same time an increase of prices for raw milk and policy of Belarusian exporters can change price situation.


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