Powdered milk and in Russia and Belarus is in excess

Weakening of Ruble has not especially influenced the market of milk powder in Russia. Operators traditionally use Russian and Belarusian products.

Despite that the processors already started seasonal reconstitution of milk powder, stocks are still big.

Belarusians, changing floor prices from rubles to dollars, wanted to reduce the price (at least, for sales of small volumes, less than 300 tonnes), but for 2 weeks the RUB weakened more. So, the dollar price at USD 2.71/kg does not already suit the market.

In the first half of December the prices of SMP is at RUB 152-156/kg in Russia. It is possible to find the “gray” products cheaper.

Oil crisis is painful not for Russia only, Venezuela also suffers from it. Market of this country, almost only the one serious alternative of dairy export in far abroad for Belarus, refused the order of 2 000 tonnes of WMP because of financial problems. So, Belarusian Dairy&Meat Company will sell these volumes to Russia at below cost prices, which undoubtedly will weaken the market.

WMP is valued at RUB 190-194/kg in Russia in December. Prices are higher under conditions of a long delay payment.

The market of milk powder will probably remain stable in Russia till the end of the month. During the Festive period (3-4 weeks) the reconstitution of milk will be temporarily stopped. So, demand will decline.

Source: infagro.com.ua

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