Market of condensed milk remains rather stable. There are problems with sales to confectioners, but sales of caned milk and export are not bad.

Demand from confectioners working in anti-terrorist operation zone was lowered before. Additionally Russia banned deliveries of Ukrainian confectionery recently, which affected reduction of demand.

At the same time the prices for condensed milk have not fallen yet. In the middle of September producers of canned milk offer their products to distributors on the domestic market at the following price: “Standard” (GOST) – UAH 12.0-13.0/can (380g), “Almost Standard” (almost GOST) – UAH 10.0-11.0/can, made by Technical Specifications (TU) – UAH 7.0-9.0 can. Not canned condensed milk cost UAH 24-26/kg (GOST), UAH 17-23/kg (“confectionery” GOST) and UAH 13-17/kg (TU).

GOST-made condensed milk is contracted for export at USD 0.85-0.90/can. High quality products made by TU are exported at USD 0.60-0.70/can. Products made with use of palm oil and whey are exported at USD 0.50-0.60/can.

Export of canned milk was reduced only by 2% to 3.6 ths tonnes in August. In September manufacturers try export condensed milk as much as possible. Production of not canned condensed milk is expected to be reduced.

Source: infagro.com.ua