News

Demand for dairy products has increased in Europe

Ukraine
Published May 29, 2023

Tridge summary

Literally in a couple of weeks, the spot prices of raw milk in the Western EU countries increased by 5 euro cents per kg and caught up with Ukrainian levels (when compared in a similar base of solids). The price of stock exchange dairy products in the EU, although not so actively, is also gradually increasing. The problem is that the Ukrainian sellers-exporters do not feel this activation yet — the demand in the EU is more than covered by European stocks. It is because of this that the difference in the cost of the SZM/butter pair, calculated in the equivalent of raw milk, reaches 24%, not in favor of Ukraine. And it is precisely this difference, with the same spot prices, that allows European colleagues to dry milk "in the plus", while at the same time, Ukrainian operators are forced to work in the warehouse (so as not to work "in the minus") and wait for better prices for milk powder in the world. We hope that these changes will come as soon as possible, but there is no certainty in this yet.

Original content

Literally in a couple of weeks, the spot prices of raw milk in the Western EU countries increased by 5 eurocents per kg and caught up with Ukrainian levels (when compared in a similar base of solids). The value of stock exchange dairy products in the EU, although not so actively, is also gradually increasing. The problem is that Ukrainian sellers-exporters do not feel this activation yet - the demand in the EU is more than covered by European stocks. It is because of this that the difference in the cost of the SZM/butter pair, calculated in raw milk equivalent, reaches 24%, not in favor of Ukraine. But this very difference, with the same spot prices, allows European colleagues to dry milk "in a plus", and at the same time, Ukrainian operators are forced to work in a warehouse (so as not to work "in the minus") and wait for better prices for dry milk in the world. We hope that these changes will come as soon as possible, but there is no certainty in this yet. Last week, the ...
Source: MilkUA
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