There are plenty of milk powder and butter in Russia now, prices falling

Autumn is at the height, but demand for milk powder and butter is not high in Russia, which was not observed last years.

Many producers of packaged butter and fresh milk products stockpiled big volumes in summer. August events corrected plans of operators. Traders bought additional volumes, but generally only for security against risk.

Temporary surge of demand deluded traders who expected an increase of prices. Now they have even to lower prices.

There were almost no sales at Belarusian Universal Commodity Exchange because of high prices. Therefore Belarusian increase stocks again. Now they make about 5 000 tonnes.

Demand for milk powder did not become excessive after August sanctions. The prices for the products even fell in October.

Although fresh milk is getting more expensive in Russia, there is enough of it to meet the reduced demand, therefore the manufacturers are not eager to reconstitute milk powder.

At the same time a more weighty argument is that Russian traders and Belorussian producers have stored big stocks of milk powder. Only in Belarus they are at about 20 000 t.

Appearance of cheap milk powder from Turkey is expected on Russian market.

As a whole, considering stocks in Russia and Belarus, and prospective import, there are no reasons to expect rise of prices for milk powder the next weeks and even months.


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