No improvement is observed in the Ukrainian butter market – prices continue to move downward. Analysts attribute this not only to the large supply of domestic product but also to the risk of a significant increase in imports.

Exporting surplus production is becoming increasingly difficult. To sell to the EU, producers have to lower prices. Demand in Moldova is also weakening due to the influx of cheaper European butter.

At the same time, prospects for supplies to Central Asian countries and the Caucasus are deteriorating.

It is expected that butter exports will decrease in November–December. In October, Ukraine managed to supply 6% less of this product abroad compared to last year. These were mostly deliveries under old contracts with more favorable prices.

Seasonal price strengthening is being restrained by the global decline and the threat of imports. Additional pressure comes from the reduction in Ukrainian import duties: the import duty on European butter has been reduced to 5.3%, while the duty on British butter has been completely abolished.

In October, significant volumes of Norwegian butter supplies were already recorded, and further growth in imports is expected in the coming months.

Reference source: http://surl.li/asdfghwertyuiiiop