After active exports operations in March, the Belarusian export trade activity has considerably weakened. Russian market got stabilized and price agiotage died down.
There are many unsolved problems in milk production and processing, in prospects of foreign trade.
Results of export in 2015 are already available. Value was essentially reduced, but some products showed growth in export volume.
The bad news continues for dairy farmers with the GDT price index seeing yet another drop at the latest dairy auction.
In Russia the production of whey powder is increasing every month in comparison with similar period of last year.
Dairy prices “will remain under pressure” next year despite the prospect of a sharp fall in milk production growth, US officials said, undermining any hopes that a late-year revival in values may signal the start of a recovery.
Improvement is not visible in Ukrainian cheese branch. Export is limited by scanty deliveries to the CIS, mainly to Kazakhstan. Internal consumption is declining. That forces to reduce considerably the production and hampers an increase of prices.
A month has already passed since Russia imposed food sanctions. It is clear that no one has profited from these sanctions, except dairy producers of Belarus and some countries of South America.
Considerably increased production of butter and SMP, termination of deliveries to Russia and inadequate attitude of Agrarian Fund (absence of promised purchases) influence formation of very low prices for the product in Ukraine.