Until recently the global market of butter looked pretty good. Ukrainian operators expected to resume export of butter to Europe. Now such a trade is completely losing perspective, at least until the end of the summer. In the EU butter is not much more expensive than in Ukraine. – INFAGRO
Most likely, in the current year there will be no active export of butter to Europe. In general, external sales of this product will be much more modest than last year. Although, according to statistics, butter exports in the first half of the year were even 17% higher than last year. But it is appropriate to mention that in 2022 the main shipments of butter took place in the second half of the year, after the opening of the EU market in June.
Due to the weakening of demand from importers, the rate of growth of butter prices in the domestic market also slowed down. In the near future, there will obviously be no drastic price changes on the Ukrainian market of butter. Exports will no longer have a significant impact on the formation of domestic prices for most operators. As for the June volume of foreign deliveries, half of the volume was sent to Kazakhstan and Moldova, the other destinations were Azerbaijan, Israel and Poland.
Imports of butter remain quite insignificant. Some operators believe that at the end of the year there may even be a shortage of goods on the Ukrainian market, which will cause an increase in imports. According to Infagro analysts, this can happen only in the case of increased exports, but there are no reasons for this yet.
In June, more than half of imported butter came to Ukraine from Germany (54%). Poland (15%), France (14%) and Belgium (9%), as well as Finland (6%) also had significant shares.