AGRO PERSPECTIVE «AGRO+ MILK UKRAINE #42 November 18, 2010
As reported Ministry of Agrarian Policy referring to regions operative data, as of Nov 12/10,
Ukrainian average purchase price for 1 grade milk raw milk sold by agricultural companies has grown by 4.4%, from UAH3,519 per MT (as of Oct 12/10) to UAH3,673 per MT.
As of Nov 12/10, 1 grade milk raw milk minimal purchase price (UAH2,960 per MT) was registered in AR of the Crimea, maximal — in Dnipropetrovsk region (UAH4,130 per MT).
As to report, as of Nov 12/10, 1 grade milk raw milk average purchase price was up 0.9% against Nov 05/10 and up as of Nov 12/09 UAH2,000 per MT.
As to Ministry, as of Nov 12/10, Ukrainian average purchase price for 2 grade milk raw milk sold by agricultural companies has risen by 3.2%, from UAH2,852 per MT (as of Oct 12/10) to UAH2,944 per MT.
As of Nov 12/10, 2 grade milk raw milk minimal purchase price (UAH2,250 per MT) was registered in Lviv region, maximal — in Kharkiv region (UAH3,500 per MT).
As to report, as of Nov 12/10, 2 grade milk raw milk average purchase price was down 1.7% against Nov 05/10, but up as of Nov 12/09 UAH1,541 per MT. As to Ministry, as of Nov 12/10, Ukrainian average purchase price for 2 grade milk raw milk sold by population individual economies has risen by 1.1%, from UAH2,639 per MT (as of Oct 12/10) to UAH2,668 per MT.
As of Nov 12/10, 2 grade milk raw milk minimal purchase price (UAH2,200 per MT) was registered in Volyn region and Lviv region, maximal — in Kherson region (UAH3,285 per MT).
As to report, as of Nov 12/10, 2 grade milk raw milk average purchase price was down 0.2% as of Nov 05/10, but up as of Nov 12/09 UAH1,379 per MT.
Besides, Ministry of Agrarian Policy also reports wholesale price (incl. VAT) for milk 2.5% fat (in plastic bags) sold by Ukrainian dairy processors has grown by 0.6% — from UAH5,18 per kg (as of Oct 12/10) to UAH5,21 per kg (as of Nov 12/10), with minimal price UAH3,93 per kg having been registered in Poltava region and maximal UAH6,27 per kg — in Lugansk region.
As to Ministry, as of Nov 12/10, wholesale price (incl. VAT) for milk 2.5% fat (in plastic bags) sold by Ukrainian dairy processors was same as of Nov 05/10, but up as of Nov 12/09 UAH3,68 per kg.
Reportedly, wholesale price (incl. VAT) for unpacked butter 72.5% fat sold by Ukrainian dairy processors has risen by 2.7% — from UAH45,22 per kg (as of Oct 12/10) to UAH46,46 per kg (as of Nov 12/10), with minimal price UAH30 per kg having been registered in Cherkasy region and maximal UAH56,24 per kg — in Donetsk region.
As to Ministry, as of Nov 12/10, wholesale price (incl. VAT) for unpacked butter 72.5% fat sold by Ukrainian dairy processors was up 1.4% against Nov 05/10 and up as of Nov 12/09 UAH30,86 per kg.
In response to Ukrainian Antimonopoly Committee recent demands, within reporting week Managing Company Terra Food Ltd, Milkiland-Ukraine, Subsidiary and Unimilk Ltd have made official declarations to reduce their hard cheese, butter and milk wholesale prices down to economically justified ones.
Thus, within this week Managing Company Terra Food Ltd has declared it is going to shorten its wholesale price for Tulchinka brand hard cheese in 2 stages (firstly by 10% and then by 5%). Terra Food Ltd has also declared it will reduce its wholesale price for Tulchinka TM butter by 3%.
Besides, Milkiland-Ukraine, Subsidiary has declared it is going to decline its retail sale network price for Dobriana TM hard cheese by 10%. Also, Milkiland-Ukraine, Subsidiary has promised to abstain from milk, sour cream, butter and hard cheese economically unjustified wholesale prices raising and try to conclude direct sale/purchase agreements with retail sale network shops.
Within reporting week Unimilk Ltd has also declared it took decision to low down averagely by 6% its wholesale prices for dairy products most consumed by Ukrainian population, — that is, for milk, Bio Balance bioproduct, Prostokvashino sour cream, Prostokvashino cheese, Litniy Den milk and Litniy Den sour cream (350 gr pack).
«Antimonopoly Committee expects other big dairy products’ producers will also demonstrate adequate reaction to Committee demands. Besides, dairy products’ prices must be declined also in retail sale network,» declared Ukrainian Antimonopoly Committee after companies had declined their dairy products’ wholesale prices.
It is to be reminded, within previous week Ukrainian Antimonopoly Committee had obliged Ukrainian dairy producers Milkiland-Ukraine, Subsidiary; Managing Company Terra Food Ltd; OJSC Dairy Alliance Ltd; Unimilk Ltd; Danone Ltd; OJSC Wimm-Bill-Dann Ukraine; Corporation Klub Syra; CJSC Galychyna; OJSC Shostkynskiy City Dairy Plant; PO Molis Ltd and CJSC Lactalis-Myckolayiv to assure within this year Nov gradual declining of milk, sour cream, butter and hard cheese wholesale prices.
Within reporting week Ukrainian dairy market situation remained same as within previous week. All dairy products’ sale prices weekly fall and demand/sale rates constant slackening have resulted in total dairy market trade suspension. Market operators explain market current situation with fact that Ukrainian weather conditions remain so far favorable for raw milk output, — that is, dairy processors are sufficiently provided with rather cheap raw milk resources. However, market operators say situation will radically change as soon as air temperature will fall to 0 °C — then in a couple of weeks dairy products’ market sale prices will stop lowering and begin growing; reverse process will start.
SMP
Within this week domestic market high-quality SMP offer prices remained UAH22–25 per kg (same as within previous week); low-quality SMP offer prices remained unchanged against last week (UAH21–22 per kg).
As of this week, Ukrainian SMP export prices have declined to US$2,400–2,600 per MT (down against previous week US$2,600–3,000 per MT).
WMP
Within reporting week domestic market WMP prices remained unchanged against previous week — UAH32–35 per kg. It is to be admitted, there was neither export no import demand within this week.
As of this week, Ukrainian WMP export price equaled to US$3,800 per MT.
BUTTER
As earlier, within reporting week domestic market butter prices continued declining.
As to traders/producers data, within this week butter 72.5% fat domestic market prices have sagged to UAH39–40 per kg (down against last week UAH40–42 per kg). Prices’ sagging was motivated with slackening of consumer demand for expensive butter, market operators’ butter high reserves and fact that dairy plants needed circulating assets for raw milk further purchases.
Due to all above factors, Ukrainian butter export has become unattractive: taking into account domestic market prices, butter 72.5% fat average export price should have already risen to US$5,000 per MT. However, it is simply senseless to sell butter at this price.
CHEESES
As to producers data, within reporting week domestic market demand for cheese (as well as all other dairy products) has somewhat slackened.
Within this week cheeses 50% fat domestic market offer prices have declined to UAH43–45 per kg (down against last week UAH48–50 per kg); it is to be admitted, there were rather large spreads between prices of same kind of cheese depending on producer, region and cheese amounts remained on warehouses.
As of this week, cheeses 50% fat export prices have grown to US$5,500–5,600 per MT (up against previous week US$5,400–5,500 per MT).
WHEY
Within reporting week domestic market whey price remained UAH7,0 per kg, unchanged against previous week.
As of this week, whey export offer price also remained unchanged against last week - US$750 per MT.
Within this week domestic market demineralized whey prices have dipped to UAH8,0–8,4 per kg (down as of last week UAH8,2–8,56 per kg); demineralized whey export price equaled to US$920 per MT.
CASEIN
Within reporting week domestic casein market situation remained same as within previous week. It is to be admitted, within this week Ukrainian casein reserves have been already exhausted.
As of this week, domestic market casein prices ranged within UAH61–66 per kg; domestic sales were slack.
There was no casein export within this week. As of this week, casein export offer prices remained US$7,900–8,000 per MT, unchanged as of last week.
Ukrainian dairy products’ export prices (US$ per MT)
