Global prices for powdered milk are rising, opening up new opportunities for Ukraine

Rising global prices for skim milk powder are creating opportunities for Ukrainian producers to increase their profits. The European Union remains the most promising export market, but the exhaustion of the quota is hindering efforts to increase shipments. At the same time, casein production and exports are declining due to unfavorable market prices.

The EU remains the most attractive export market

Demand for skim milk powder is keeping Ukrainian exporters active even in the fall. Producers are signing new contracts, focusing primarily on the European market. Buyers in Asia, on the other hand, are reacting more cautiously to price increases.

Despite favorable market conditions, there has not yet been a significant increase in exports. Based on the results of the first three quarters, skim milk powder shipment volumes have remained virtually unchanged compared to the same period last year. Thus, high global prices have not yet led to a noticeable increase in Ukrainian exports.

An additional factor complicating the situation in the dairy market is the less favorable market conditions in the butter segment.

Casein production is declining

In contrast to the skim milk powder market, the situation with casein remains challenging. Due to unattractive prices, producers are diverting raw milk toward the production of skim milk powder. This is leading to a decline in casein production and a decrease in its exports.

Based on the results of the first three quarters, casein exports have dropped significantly compared to last year.

Exports of whole milk powder are subdued

Limited opportunities to raise prices in foreign markets are also holding back exports of whole milk powder. At the same time, domestic demand—particularly from large international confectionery companies—allows producers to sell their products on slightly more favorable terms.

Consequently, the situation in the dry dairy products market remains mixed. High global prices are creating opportunities for Ukrainian producers of skim milk powder, while casein and whole milk powder are facing less favorable market conditions.

This information is based on a report by “Infagro.”

Maximum prices for gasoline will rise in Poland, while diesel will become cheaper — RMF24.

Pakistan’s Deputy Prime Minister has ordered measures to be taken against price gouging — The Express Tribune.

Autogas prices will rise to 50 UAH: fuel price forecast for Ukraine.