In October 2023, Ukraine imported 6.08 thousand tons of dairy products, which is 27.8% more than in September and 35% more than in October 2022, which is the highest figure since March 2022.
According to the Ukrainian Agribusiness Club (UCAB), growth is recorded in all categories of dairy products, but the largest imports are cheese – 3.2 thousand tons. In addition, in October, the volume of butter imports doubled, reaching 619 tons, which is the highest figure since November 2021.
“In total, 48.89 thousand tons of dairy products were imported in 10 months of 2023, which is 6.1% less than in the same period last year, but at the same time, the value is 11.3% higher ($210.2 million),” the UCAB emphasized.
According to the association’s analysts, the volume of dairy exports remained stable for the second month in a row – 8.25 thousand tons, which corresponds to the same period last year. However, in monetary terms, the revenue decreased by 19% to $226.94.
At the same time, UCAB experts noted the intensification of demand in the global dairy market after a nine-month decline in prices. This is confirmed by the FAO index for October and the increase in trading on the Global Dairy Trade: the average value of the FAO Dairy Price Index in October was 111.3 points, which is 2.4 points (2.2%) higher than in September, but still 28 points (20.1%) lower than in the same period last year.
“In October, world prices for milk powder increased the most, mainly due to a sharp increase in import demand under both short- and long-term contracts. An additional factor in the growth of prices for dairy products was the limited supply of milk in Western Europe and some uncertainty about the impact of weather conditions on production in Oceania,” explained UCAB analyst Maxim Hopka.
World butter prices rose under the influence of stronger retail prices before the start of the winter holidays in Western Europe and increased import demand from Northeast Asia. At the same time, cheese prices, on the contrary, slightly decreased due to the weakening of the euro against the US dollar and the growth of export supply from Oceania, UCAB summarized.
In the first nine months of this year, Ukraine reduced the turnover of dairy products by 9.7% compared to the same period last year – from $353.4 million to $318.8 million, the press service of the Union of Dairy Enterprises of Ukraine (UDEP) reported.
According to the published data, the volume of dairy exports decreased by 23.5% in monetary terms to $140.2 million compared to $183.5 in January-September 2022. The business association attributes this decline to the price factor. At the same time, imports increased by 5.2% – from $169.9 million to $178.6 million.
The UMSU noted that the export-import balance for the reporting period was negative – $38.3 million, while for the same period last year it was positive – $13.6 million.
“Of all the exported products, the positive balance was maintained in the trade of butter, as well as milk and cream, both condensed and non-condensed. Exports of other dairy products, such as fermented milk, whey, and all types of cheese, declined significantly. The situation in cheese trade is even worse. Although their exports increased slightly compared to last year, imports grew significantly more, and the balance worsened accordingly,” the association stated.
The Ministry of Agriculture and Development of Albania has approved the form of international veterinary certificate, which the State Service of Ukraine for Food Safety and Consumer Protection prepared in cooperation with the Ministry of Foreign Affairs for the export of heat-treated dairy products, the press service of the State Service of Ukraine for Food Safety and Consumer Protection reported.
According to the report, currently it is possible to export three types of products to Albania: poultry, meat semi-finished products and heat-treated dairy products for nutrition.
On the official web portal of Gosprodpotrebsluzhba published the form of international certificate for the export of Ukrainian dairy products.
In addition, the agency reminded that in order to export food products, the market operator must submit a request for unscheduled veterinary control, which is carried out according to the requirements of the country of destination, to the main departments of the State Food and Consumer Service in the regions and Kiev, as well as its interregional branches at the state border, through which the products will be exported.
To the application of the market operator it is necessary to attach copies of the foreign economic agreement/contract; documents certifying the existence of special requirements established by the competent authority of the country of destination of the cargo (if any); documents certifying the characteristics of the cargo of food products and the vehicle (if any – invoice, CMR, commodity-transport specification of the food product).
The relevant territorial authority shall issue the international certificate on the working day after receipt of the market operator’s application.
Canada has opened its market for Ukrainian products, particularly milk and dairy products, the press service of the State Service of Ukraine for Food Safety and Consumer Protection said.
“Thanks to the joint work of the State Service for Food Safety and Consumer Protection and the Ministry of Foreign Affairs, a new market for the sale of Ukrainian products, namely milk and dairy products to Canada has been opened,” the statement said.
Explanation of the requirements of Canadian legislation on producers of dairy products and indicated in the zoo-sanitary certificate are published on the official web-portal of Gosprodpotrebbey.
The form of the certificate for export of milk and dairy products agreed by the competent authorities of both countries can be found on the official website of the State Consumer Service in the section “International Cooperation” in the section “Certificates for export and zoo products”.
To start the export of food products the market operator must apply to the territorial body of the Service at the location of the production facilities.
Ukraine in April 2023 exported 6.55 thousand tons of dairy products, which is 27% less than in March, while imports increased by 3% and reached 5.17 thousand tons, the Ukrainian Club of Agrarian Business (UCAB) said.
“Despite the fact that some bans have been lifted, they had a very negative impact on the foreign economic situation in the industry. The last time such export volumes were observed a year ago, before the European Parliament supported the termination of import duties on Ukrainian agricultural products”, – UCAB analyst Maxim Gopka said.
According to the experts, the main reasons for the decrease of export were the blockade of import of Ukrainian agricultural products to the EU, difficulties with transit through East European countries and passive demand in the world.
UCAB points out that the decline in supplies can be observed in almost all categories without exception: unthickened milk and cream – by 33%, to 1.66 thousand tons; condensed milk and cream – by 40%, to 988 tons; yogurt and kefir – 17%, to 200 tons.
Exports of milk whey decreased by 17% to 1.03 thousand tons; butter – by 4% to 808 tons; ice cream – by 2% to 824 tons; cheese of all kinds – by 33% to 515 tons.
The Association also stressed that the export of dairy products to Poland fell in April by 29% compared to March and amounted to 242 tons.
The largest importers of Ukrainian products remained Moldova, Kazakhstan and Azerbaijan.
As for imports, the biggest growth – by 74% to 142 tons – was observed for milk and cream, the UCAB stated.
Polish dairy processors are concerned about the closure of their market for the export of Ukrainian dairy products and expect the use of the reciprocity principle, which will lead to a drop in imports of Polish dairy products by Ukraine, the analytical agency Infagro reported.
“Today I am most afraid of the use of the principle of reciprocity of Ukraine in trade relations with Poland. If Ukraine closes its market for us, we will find ourselves in a very difficult situation. Today 6% of all our cheese exports go to Ukraine. The volume of imports of dairy products to Poland from Ukraine was small compared with Polish exports to Ukraine. Therefore, the income and loss account is obvious,” Agnieszka Maliszewska, vice president of COGECA and director of Izba Mleka (Poland) was quoted by the agency.
Her concerns are shared by Marcin Gidzik, president of Polish Milk Processors Association. According to the principle of reciprocity, we can expect Polish exports to slow down unless other agreements are reached between the Ministers of Agriculture,” he said in an interview with portalspozywczy.pl.
According to his information, in January-March 2023 Ukraine exported to Poland 1 ton of products marked with code CN 0401 – non concentrated milk and cream without added sugar, 60 tons of butter or other milk fats and 710 tons of milk powder.
In the same period Poland exported 2,213 tons of cheese, 1,080 tons of whey and 1,312 tons of fermented products to Ukraine.
