After four bumper auctions in a row, prices fell at the latest Global Dairy Trade auction.
It is good if the country is absolute leader in sales of products for such big market as Russia, even despite difficult economic situation.
China opened its dairy market for Ukraine, 18 domestic plants got the permissions for export one of these days.
Generally, now many operators started to stockpile butter, believing the products will hardly be cheaper.
Ukrainian enterprises refuse to diversify the production of cheeses by milk powder. In hope of improvement of market conditions they prefer to risk and produce large volumes of cheeses.
It becomes more free milk in Ukraine and processors have to reduce prices for it in conditions of weak demand for dairy products.
As a whole the situation looks strange on cheese market. There are big problems with sales, but production is growing, and the prices do not fall at all.
Summer has already begun, but dairy operators still do not have a clear vision of the sales prospects.
Decline of prices for cheeses, which was observed in Russia in April, was slowed down in the first half of May. But the general tendency is not changed yet – cheeses continue to become cheaper.
In Ukraine the high season of production has begun. Cows are moved to pastures and milk production has essentially increased. This fact does not especially please farmers.