Stocks of butter are reducing quickly in Russia

The situation became aggravated for Russian traders/operators. They have two problems now: devaluation which makes import noncompetitive (even from Belarus), and deficiency of means.

Crisis in financial sector does not allow to “buy” easy an additional finance any more, as the credit rate jumped up essentially. It is very problematic to obtain currency. So, now delay of payments essentially influences a final price of commodity products in Russia.

Winter period forced producers of butter to use bulk products more actively for packing. Producers of fresh milk products started to use large volumes of butter for processing. Therefore stocks are reducing quickly in the country.

Low supply of domestic 72.5% butter was compensated by Belarusian products. Now the dollar prices for Belarusian products are stiff, so, prices quickly go up in Russia. 72.5% butter, bought at Belarusian Universal Commodity Exchange, will cost for Russian buyer RUB 260/kg a minimum, therefore either old stocks or “gray” Belarusian import are actively resold on the market now. So, the prices start from RUB 240/kg.

Supply of butter from Latin American positively affected the market in October-December. This year traders will import products only “under request” and with the hedged exchange rate, because of financial risks. Cost of those contracts will probably start from RUB 300/kg.


Latest news: