The situation in the market of butter is rather uncertain. In the world market prices of butter are falling, so, export prices are low. – INFAGRO
At the same time, the prices of butter in the domestic market has noticeably increased. This can only indicate a limited offer, which also does not seem logical considering the height of the production season.
In the domestic market, butter 82% is sold for up to 130-138 thousand UAH/t, and “Krestyanske” butter – up to 113-118 thousand UAH/t. That is, currently domestic price does not stimulate export. After all, Western traders offer mostly no more than 3,900 USD/t for the butter aimed for non-CIS countries. Manufacturers do not want to sell the product for this price, they are looking for opportunities to sell to the post-Soviet countries, where they are paid about 4100 USD/t.
As the prices for butter do not seem logical now, a change in market conditions is possible in July, and most likely domestic prices will have fallen.
The possibility of a certain shortage of butter is confirmed by statistics of its production. In particular, in May the output of butter amounted to 8.8 thousand tons, which is 22% less than in May last year.
In general, for the year, butter production in the country may be a quarter less than last year’s level. This is a very significant fall.