Ukraine: The market prospects for powdered milk are encouraging

Ukrainian manufacturers of SMP are no longer eager to sell the powder even for 1900 USD/t, although not so far ago they sold it even for as low as 1800 USD/t. Whole milk powder is also sold well. – INFAGRO

Many milk powder producers have already switched production from SMP to WMP. It is interesting that the WMP market is growing at the expense of increasing interest from far abroad countries, although traders are still cautious buying our goods explaining their behavior by long absence of Ukrainian milk powder in the world dairy markets. Nevertheless, they pay 2750-2850 USD/t for it. And from economic point of view, at current prices, this is better than “SMP + butter” production.

Before Easter the demand for milk powder in domestic market has slightly increased. The advantage of production of WMP over skimmed milk powder has been traced for a long time. For example, in the first quarter, 3.6 thousand tons of WMP were produced (+11% to 1Q 2018), and 5.3 thousand tons (-7%) of SMP.

If the price of butter does not get stronger, the offer of SMP will not significantly increase even in May.


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