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Ukraine. Production of fresh dairy products has shrunk

Production of fresh dairy is no longer growing and it seems that producers are not keen to increase it.The struggle for raw materials has ceased.The reason is a decrease in orders from retail and general fall in consumer demand.

This reduction has occured mainly due to desire of dairies to increase prices and curtail promotional sales.  But even in such conditions, producers intend to further increase prices for fresh dairy products.  In December prices of main positions look as follows:

  • milk 2.5%, pouch – 27.0-28.5 UAH / l
  • kefir 2.5%, pouch – 30.5-32.5 UAH / l
  • sour cream 15%, pouch – 68-73 UAH / kg
  • cottage cheese 9% – 115-130 UAH / kg

The drop in production of fresh dairy products applies only to high-margin products.  Last month even the output of cottage cheese products fell to 7.1 thousand tons. In October the output of fermented milk products (33 thousandtons) was 10% less than last year.

At the same time, the volume of bottled milk production has been growing for two months in a row.  In November, it was packed 43 thousand tons, 9% more than November 2020. But the annual figure is unlikely to exceed that of 2020.

 

INFAGRO

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