Ukraine raw milk deficit causes reduction in the production of export-oriented dairy products, which naturally leads to shrinking export volumes. – INFAGRO
According to exports statistics of 2020, the YoY increase in exports is noted only for canned milk (+13%), whey powder (+11%) and casein (+1%).
For all other dairy goods, there is a decrease in exports, and most often this decrease is significant. Foreign sales of butter dropped by 38%, SMP by 17%, and cheese and cheese products by 7%.
If exports were reduced only due to a redistribution of trade flows in the domestic market, it would be half the trouble. Unfortunately, last year imports of most of the key dairy items increased several times in comparison with the previous year. It was purchased 2.1 times more cheese and almost 4 times more butter. Imports of fresh dairy products has grown 2.2 times, and even import of SMP has increased 2.7 times.
Unfortunately, in 2021 we will have to continue observing the growth of imports and decrease in exports of dairy products.
At the same time, Ukrainian exporters increase export deliveries of some goods. For example, last month exports of a number of dairy products exceeded the indicators of December 2019: it was sold by almost a third more milk powder, 21% more whey and 11% more cheese products.
At the end of the year, imports of dairy products, although continued to grow, was lower than in the same period in 2019. There was imported less butter and milk powder. But imports of cheese, fresh dairy products and canned milk continued to make operators of Ukrainian dairy market upset.