Butter is getting cheaper in Ukraine
8 April 14:24
The situation on the oil market remains unstable following the recent price hike, which did not become a long-term trend.
This is reported by experts from the analytical platform “Infagro,” according to "Komersant Ukrainian".
“In the European market, which plays a significant role for Ukrainian exporters, prices have dropped noticeably over the past few weeks, returning to significantly lower levels,” the report states.
Experts attribute this trend to an oversupply amid active production, as well as the influence of the related skim milk powder market, where prices remain high. As a result, inventories are building up, which is putting additional downward pressure on prices.
However, in the absence of positive signals from the European market, industry participants anticipate further price adjustments both for export markets and domestically. This is attributed to increased production and the accumulation of unsold inventory.
According to market estimates, butter production in Ukraine has increased compared to last year, while export activity does not show similar dynamics. Experts emphasize that the high cost of dry milk remains an additional incentive for producers, partially offsetting losses from the decline in butter prices.
According to their forecasts, product supply will continue to grow in the near future, which could intensify pressure on prices and maintain market volatility.
