Crisis situation on the Ukrainian butter market

The Ukrainian butter market is experiencing acute problems. After intensive summer exports, company warehouses are full, and domestic sales have become difficult. Leading producers who are able to lower prices remain afloat, but for most, this leads to losses. At the same time, rising milk purchase prices do not allow for maintaining production profitability.

Source Infagro

The decline in butter prices at the end of October did not improve the situation. Packaged products retain some advantages, but competition is growing. Prices are also falling on foreign markets, particularly in Moldova, which is causing difficulties for producers. Hopes for new duty-free quotas to the EU have not been fulfilled due to low price offers that do not cover costs.

Due to these losses, some factories have suspended oil production, resulting in a decrease in production volumes in October compared to last year, which is an alarming sign for the industry. The situation requires urgent measures to support market stability and prevent further production cuts.