Infagro: Butter prices may rise by 15%

In the world in recent months, prices for butter have increased by a third. Until the end of the year, prices are expected to rise by another 15%, which will also occur in Ukraine, as the domestic market reacts to global trends.

Vasily Vintonyak, director of Infagro, told Delo.ua about this.

According to the expert, butter prices are now the highest in recent years. This trend is associated with the rise in the cost of raw materials and because of the record gas prices that have been observed in the world over the past two months.

Also, the rise in prices for butter in the world is due to the high demand for raw materials from traders. However, in Ukraine, the cost of the final product is growing more slowly than in other markets.

Regarding the import and export of butter, there is a balance in Ukraine now, where Ukraine exports about 10 thousand tons and imports approximately the same volumes. According to Vasily Vintonyak's preliminary estimate, Ukraine may end this year with higher export figures, up to 11 thousand tons: “Several years ago we exported oil to the EU, but now we mainly sell to post-Soviet countries such as Kazakhstan, Armenia, Moldova, Georgia . Three years ago, Ukraine exported up to 30 thousand tons per year, but now we no longer have such volumes of milk to produce so much butter and sell it.”

The expert added that imports of butter to Ukraine mainly come from Poland. At the same time, the cost of Polish oil after customs clearance is higher (more than 200 hryvnia per kg) than in Ukraine (about 180 hryvnia per kg), so now it becomes unprofitable for foreign exporters to import it to our country.

delo.ua