Butter Prices in Ukraine Do Not Cover Production Costs

In July 2023, the situation in the Ukrainian butter market did not improve. The supply of products exceeds demand, and prices remain low. Exports to EU countries remain economically unviable for most Ukrainian producers, despite rising prices in the European market. The best offers come from buyers in the Caucasus. The volumes of butter exports are decreasing, with shipments abroad halved compared to the first half of last year, and export prices have also fallen. Supplies to the EU remain insignificant, indicating a lack of attractiveness of prices in the European market. There are no expectations for an increase in exports to the EU in the second half of the year. Exports of spreads and vegetable-butter mixtures have decreased significantly less. The main demand for such products remains in the markets of the Middle East. Producers are increasingly focusing on the domestic market; however, domestic prices do not cover production costs. The packaged butter segment remains profitable with effective sales organization.

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