AGRO PERSPECTIVE «AGRO+ MILK UKRAINE #91 November 3, 2011.
UAH official exchange rate (up to National Bank of Ukraine) against
several foreign currencies
03.11.2011
27.10.2011
20.10.2011
13.10.2011
100 US$
797,9300
797,62
797,57
797,37
100 EUR
1101,8615
1110.8454
1102.8798
1097,6595
10 RUB
2,6006
2,6089
2,5790
2,5382
100 KZT
5,3900
5,3908
5,3945
5,3916
As to UkrainianState Statistics Committee report, Ukrainian Sept milk/cream powder output has plummeted to 4,290 MT (down 30.1% against
Aug 2011/down 28.3% as of Sept 2010). Within Sept 2011 highest milk/cream powder outputs were provided by Vinnytsia region, Zhytomyr region, Chernighiv
region, AR of the Crimea and Sumy region, while milk/cream powder output 4 leading companies were CJSCBershadmoloko
(Vinnytsia region); OJSC Zhytomyrskiy Butter Plant(Zhytomyr region); OJSC Novator (AR of the Crimes) and Romenskiy Dairy Plant,Subsidiary (Sumy region).
As to Committee, within this year Sept Ukrainian fermented milk products’ output has declined to 37,301 MT (down 6.4% against this year Aug, but
up 3.1% as of last year Sept). Within Sept 2011 highest fermented milk products’ outputs were provided by Kyiv region, Lviv region, Dnipropetrovsk
region and Kharkiv region, while fermented milk products’ output leading companies were CJSC Galychyna (Lviv region); CJSC Donetskiy City Dairy Plant ¹2 (Donetsk region); Danone Dnipro Ltd (Kherson region); OJSC Wimm-Bill-Dann (Kyiv region) and Public
JSC Prydniprovskiy Dairy Integrated Plant (Dnipropetrovsk region).
Today it is necessary to strictly control process of subsidies’ payments for Ukrainian raw milk output and dairy farming development. So far, this
process remains uncontrolled. It is not realistic now to renew raw milk producers’ subsidizing. In order to relaunch mechanism of subsidies’ payments
and make it work efficiently, much time is needed. Those subsidies which are paid now don’t satisfy anybody since money in fact doesn’t reach
agrarians. So, today it is necessary to strictly control process of subsidies’ payments for Ukrainian raw milk output and dairy farming financial
support. As of now, it is uncontrolled process, since some agrarians receive subsidies and some don’t. Besides, there is no money enough remained to be
paid as subsidies, since authorities wanted subsidies to be paid from those funds to which dairy processors should have transferred their VAT payments
— but, as it comes out, those special funds don’t have enough money since some processors have simply optimized their VAT payments (thus, earlier they
had been paying VAT payments directly to producers, but now they try to evade making VAT payments to State budget — what is quite possible to be done
legally in many ways and so dairy processors make use of it).
It is to be reminded, Verkhovna Rada has registered draft Law ¹9345 from Oct 26/11 stipulating that mechanism of paying subsidies to raw milk producers
should be revived. However, in order to make this draft Law work efficiently, it should be inserted into 2012 State budget. As to draft Law
explanatory note, this draft Law suggests that a provisional regulation (valid until Jan 01/15) should be introduced stipulating that VAT payment
amounts which are to be paid by dairy processors of all kinds property to State budget for milk, dairy products, meat, meat products, other animal
processing products (hides, byproducts, meat and bone meal tankage) made from animals purchased in live weight must be directed in full only to pay
subsidies to agricultural goods’ producers for raw milk and animals which they have sold in live weight to dairy processors.
In meanwhile, within reporting week Ukrainian domestic market dairy products’ sale rates were minimum low; most dairy products’ prices were going
down.
Within this week Ukrainian domestic market SMP prices have grown to UAH29–31 per kg (up 0.9% against previous week); this week SMP export prices have
boosted to US$3,000–3,100 per MT (up UAH100 per MT as of last week).
Within this week Ukrainian home market butter prices have declined to UAH43–44 per kg, down 0.6% as of last week. As of this week, home market butter
demand was low; unsold butter reserves’ amount was growing up.
Within reporting week Ukrainian butter export remained zero low; export prices ranged within US$3,900–4,100 per MT.
Within this week internal market cheese prices have lowered to UAH53–56 per kg, down UAH0,5 per kg as of last week. As of this week, cheese export
prices have sagged to US$5,900–6,100 per MT, down 0.8% against previous week. This week cheese domestic demand remained same as within previous week.
It is to be admitted, producers won’t significantly decline cheese and butter sale prices even if these products’ demand continues slackening (due
to cheese/butter production low profitability), — since, in any case, cheese/butter domestic market demand will start growing in mid Dec, thus making
it possible for producers to raise sale prices at that time.
Within this week Ukrainian home/export markets’ casein prices remained same as within last week: home market — UAH74,5–77 per kg, export market -
US$8,600–8,750 per MT. Within this week Ukrainian casein export market demand was gradually going down.
As of this week, Ukrainian domestic/export markets’ WMP demand remained slack; this week WMP prices remained unchanged against last week: domestic
market — UAH36–37 per kg, export market — US$3,500–3,600 per MT.
