Income from dairy exports down in Ukraine

The export of dairy products from Ukraine decreased by 22% in January-February 2019 year-over-year, amounting to $34.2 million, while supply volumes remained at the same level as last year.

"The decline in prices for dairy products in the world market led to the fact that, while exporting the same volumes as in 2018, we received lower cash proceeds. As of today, exports don't give us such a 'financial pillow' as before, but we shouldn't hope for the domestic market either, since the consumption in Ukraine is already low, moreover, there is religious fasting underway. During this period, sales of dairy products are falling even lower," the press service of the Association of Milk Producers quoted analyst Yana Muzychenko as saying.

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It is reported sales of milk and cream amounted to 5,000 tonnes, which is 54.6% more y-o-y. The highest share of such exports was to Qatar (42%, or $1.4 million) and Moldova with 24%, or $814,000.

Sales of condensed milk and cream, taking into account powder milk, in January-February amounted to 3,600 tonnes, which is 32.4% lower than in 2018. The main importers of this product during the reporting period were Kuwait, Israel, and Armenia, with a total share of 25% in the structure of all shipments. Thus, Ukraine exported to these countries condensed milk and cream, as well as powder milk, worth a total of $6.5 million, namely worth $837,000 to Armenia, $672,000 to Israel, and $555,000 to Kuwait.

According to the Association, exports of fermented milk products in January-February amounted to 975 tonnes, which is 46.2% more y-o-y. The main buyers for the reporting period were Kazakhstan, which imported this product by $563,000, or 40% in the total supply structure, and Moldova – by $382,000, or 27.3% in the total supply structure.

In addition, 3,900 tonnes of butter were exported in the two months of this year, which is 36.4% less y-o-y. The main importers during the reporting period were the Netherlands, Morocco and Moldova.

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The supply of cheese to foreign markets increased by 3.17% y-o-y, to 1,000 tonnes. At the same time, the total export value decreased by 2.8%, to $3.5 million. The largest importers of Ukrainian cheese were Moldova and Egypt.

The sales of milk whey increased by 21% y-o-y and amounted to 4,900 tonnes. At the same time, most of these products were exported to China and Malaysia during the reporting period.