Ukrainian dairies got the good news from the Government: the state price controls have been cancelled for a trial period of three months and the dairies can now set the prices for staple dairy foods themselves –INFAGRO

Now Ukrainian dairies producing milk, kefir, sour cream – the so called “socially important foods” (staple foods) – do not have to submit to the state administrations declarations on the changes in prices for these products. Frankly, so far dairies have not been strictly keeping the demanded procedure, but now they will feel somehow calmer.

It is clear that the price of dairy products be it declared or not, will grow in the near future primarily due to the increased raw milk price. However, the growth of price has to be kept very gradual, otherwise it might result in significant reduction in sales.

Before the abolition of the price controls the prices for fresh dairy products had not been lowering, and lead dairies were planning to increase them in the nearest future.

In mid-August the prices for the main types of fresh dairy products were as follows: milk (2.5%) in cheap packaging (pouches) 11.7-13.3 UAH/l, yogurt (2.5%) 13.7-15,0 UAH/l, sour cream (15%) 29-32 UAH/kg, cottage cheese (9%) 55-68 UAH/kg.

There has not happened a “breakthrough” in dairy exports trade. Shipments of these products are small, less than 1 thousand tons (including 580 t of milk). Soon there may arise problems in supply of fresh milk products to the main customer – Republic of Moldova: in the third quarter some operators may have taken up the duty-free quota.

Imports of fresh dairy products remain insignificant: last month only 212 tonnes were imported to Ukraine.

INFAGRO