Some signs of revival in the world dairy market and the decrease in milk supply in Ukraine in late summer have contributed to formation of exaggeratedly optimistic sentiment of Ukrainian dairy manufacturers and traders. – INFAGRO.
They decided to quickly and significantly increase the price of almost all products. But seems they overestimated the situation. The global market is not so strong yet, and Ukrainian consumers are not prepared to the sharp price increase.
For this reason, by the end of June the market agiotage somewhat subsided. For a number of goods the price growth has stopped, and some products even got cheaper. However, the dairy products in Ukraine will not become cheaper. The growth of milk purchase prices has started and it will go on. Perhaps on the markets of some dairy products there will be periods of price stabilization, but eventually the growth of prices will resume.
Many Western analysts say that there is no clear upward trend in world prices yet and the market will rise significantly only in 2017. INFAGRO cannot entirely share such pessimistic views. Anyway, the price of Ukrainian dairy products in the medium term will go up. The reasons are, on the one hand, the shrunk in milk production and consequent growth of milk price, on the other hand – the situation on the dairy markets of the former Soviet Union countries, which consume the lion’s share of Ukrainian dairy exports, is somewhat different from the global.