AGRO PERSPECTIVE «AGRO+ MILK UKRAINE #45 December 9, 2010.
No significant changes occurred in the Ukrainian market of dairy products last week. The level of trading activity of domestic operators and exporters remains rather low.
The majority of dairy products are exported in small batches due to the fact that the world market considers the domestic foodstuffs non-competitive.
It was expected earlier that the milk yield will see seasonal reduction as soon as air temperature drop to 0 C and the price of raw milk and derived products will jump as a consequence.
But the prices for all types of dairy goods remained at the level of the previous week.
It is explained by the fact that huge reserves of whole-milk products restrain the growth of their prices.
SMP
Within this week domestic market high-quality SMP offer prices remained at UAH22–25 per kg (low-quality — UAH20–22 per kg), same as within last week.
As of this week, SMP export prices ranged within US$2,450–2,500 per MT (small batches were exported to Russia and Kazakhstan at US$2,600–3,000 per MT).
WMP
Within reporting week domestic and export WMP prices remained at UAH35–37 per kg and US$3,800 per MT respectively.
BUTTER
Within this week butter 72.5% fat domestic market offer prices made up UAH39–42 per kg.
Ukrainian butter is exported in small volumes and mainly in packs. Butter export has become unattractive because butter 72.5% fat average export price should have already made US$5,000 per MT. However, it has no sense to sell butter at this price.
CHEESES
As to Ukrainian traders/producers data, within reporting week domestic market demand for cheese (as well as all other dairy products) has somewhat slowed down.
Within this week cheeses 50% fat domestic market offer prices ranged within UAH42–48 per kg; it is to be admitted, there were rather large spreads between prices of same kind of cheese depending on the producer, region, and the reserves of cheese in storage facilities.
Within reporting week cheese export prices remained at US$5,500–5,600 per MT, unchanged against previous week.
WHEY
Within reporting week, home market whey prices made up UAH6.8–7.2 per kg.
Within this week whey export offer prices made up US$780–800 per MT.
In particular, within this week domestic market demineralized whey prices were in the range of UAH8.6–8.8 per kg; demineralized whey export price ranged within US$920–950 per MT.
CASEIN
Due to the lack of demand the average domestic market casein prices fell to UAH58–60 per kg.
There was no casein export within this week. As of this week, casein export offer prices ranged within US$7,400–7,500 per MT.
Ukrainian dairy products’ export prices (US$ per MT)
