The market of dairy commodities reached ceiling in Russia.
Prices for 72.5% butter dropped in February. For two weeks they declined by RUB 30 (or 13%) on the average. Now it is possible to buy butter of 72% fat content at RUB 200-205/kg. In the middle of January, right after New Year’s holidays, prices reached RUB 260/kg.
Prices for 82% butter fell also, though not so considerably. Belarusian products are valued at RUB 250-260/kg in Russia. Products from Latin America are offered at the same price level, but its prime cost is often more expensive.
It is worth mentioning that traders, which had ordered products from far abroad in autumn, seriously suffered. The expected products were delivered at absolutely another price because of the devaluation. There is already information about cases of bankruptcy of Russian traders.
Taking into account falling prices, it is surprising why Belarusian officials still have not reconsidered indicatives. After all, the products have not been sold at Belarusian Universal Commodity Exchange (BUCE) since the middle of December. Of course, “gray” import is present on Russian market, but stocks are increasing in Belarus.
Belarusian Ministry of Agriculture will probably lower export prices for butter the next days. There are almost no reasons for growth of prices in Russia. The situation will be stable at the best on the market of 72% butter the next weeks. Prices for 82% butter of Belarusian origin are expected to fall.