Producers of fresh milk products get to worrying. Considerably increased milk prices force them either to increase prices for the products and reduce sales, or to work without profit or even at a loss.
Milk market of Ukraine is increased in November: many processors do not have enough milk to satisfy the needs, therefore prices quickly grow.
Now the dairy branch of Ukraine goes through the period of changes. Milk prices have been promptly increased, processors try to increase the prices for dairy products too. But hardly this will become a long tendency. The situation worsened again on global markets – export does not rescue so much.
Considerable changes did not occur on the market of butter in second half of October. Despite low supply, demand has not strongly grown.
Milk prices has grown by UAH 0.15-0.20 from November.
Recently a stability in production, growth of internal and export prices were observed on Ukrainian market of cheese. The main news is renewal of lawful deliveries of cheese from some plants to Russia.
End of September was quite stressful for milk market of Ukraine. Processors postponed revision of prices, despite shortage of milk.
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.
