Ukraine’s dairy exports up by 17% in Oct

Ukraine’s dairy exports up by 17% in Oct

In October 2023, Ukraine increased the volume of exports of dairy products by 17% against September, while cash receipts rose by 22.6%.

That’s according to the Association of Dairy Producers, Ukrinform reports.

"According to preliminary data of the State Statistics Service of Ukraine, in October 2023, Ukraine exported 8,790 tons of dairy products worth $18.15 million. The natural volumes of exports increased by 17% against September, and the monetary income increased by 22.6%," the report reads.

It is noted that the following products comprised the main export categories: milk and condensed cream - 23%; cheeses - 24%; casein and caseinates - 17%; and butter - 15%.

In October, natural volumes of milk and non-condensed cream exports amounted to 2,610 tons, which is 12% up against September. The total price amounted to $1.57 million, marking a 19% increase. About 92% of goods were exported to Moldova, 3% to Georgia, 2% to North Macedonia, and 1% to EU member states. Also, Ukraine increased natural volumes of milk and condensed cream exports to 1,850 tons (+11%), and the monetary value stood at $4.16 million (+1%). Nearly 59% of the goods were delivered to EU member states, 11% to Bangladesh, 9% to Moldova, and 3% to Georgia.

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The export of fermented milk products (buttermilk) in natural volumes increased to 308 tons (+2%), and in monetary terms – to $357,000 (+5%). About 95% of fermented milk products exported from Ukraine went to Moldova and 1% each to the EU and UAE. Last month, Ukraine exported 1,700 tons of milk whey worth $975,000. The natural volumes of these exports increased by 28%, and the monetary value – by 31% against September. Around 39% of the exported goods were sent to the EU, 26% to China, 7% to Vietnam, and 16% to the Middle East and North Africa.

In October, Ukraine exported 984 tons of cheese worth $4.27 million. The natural volumes of exports increased by 22%, and the cash receipts for the goods delivered was up by 25% compared to September. The main export destinations for cheese in October were Kazakhstan (38%), Moldova (38%), EU (9%), Uzbekistan (6%), Azerbaijan (4%), and the U.S. (3%). In October, Ukraine exported 516 tons of casein and caseinates worth $3,110. In September, Ukraine did not export casein at all.

Read also: Ukraine exports over 9.8M t of grains, pulses

Last month, Ukrainian exporters reduced natural volumes of butter supplies to foreign markets to 489 tons (-8%). Cash price for exported oil decreased to $2.63 million (-1%). About 75% of butter exports were directed to Moldova, 8% to Azerbaijan, 5% to China, 4% each to Kazakhstan and Georgia, and 1% to the EU.

Also, in October, Ukraine reduced the natural volumes of ice cream exports to 325 tons (-71%). The cash price for the goods fell to $1.04 million (-70%). About 48% of exported ice cream went to the EU, 20% to Israel, 19% to Moldova, and 4% each to China and Great Britain.

ADP analyst Heorhiy Kukhaleishvili suggests that Ukraine reduced butter exports due to active demand for the product and lower stocks on the domestic market. Due to the shortage of raw materials as a result of the August heat, Ukrainian processors produced less butter than usual on the eve of the autumn-winter sales season. In addition, Ukrainian companies are less and less interested in exporting butter to Europe, since local producers are more attractive in price for European consumers. The decrease in ice cream exports may be related to the end of the seasonal peak of its sales in Europe, which is the main market for this product for Ukrainian enterprises. Ice cream consumption in Europe peaks in spring and summer.

It is noted that the increase in the export volume of the remaining dairy products is likely due to the intensification of demand in autumn after the end of the holiday season. Ukrainian products are attractive to buyers from Kazakhstan, where complaints prevail about low-quality milk imported from Russia.

The expert noted that in the conditions of a limited supply of raw milk and an increase in purchase prices, almost all types of dairy products have become more expensive in Ukraine. Most likely, this became the reason for the higher volume of dairy imports in October by 28% against September.

Last month, Ukraine imported 692 tons of milk and non-condensed cream (+45%), 163 tons of milk and condensed cream (+28%), 848 tons of fermented milk products (+38%), 521 tons of milk whey (+20%), 619 tons of butter (+53%), 3,200 tons of cheeses (+19%), 34 tons of ice cream (+39%), and 3 tons of casein from EU member states, the UK, and Switzerland.

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