Expert Opinion
Oleksandr Nazarko
CEO
Global Agro Finance

Summer camps for keeping cows in winter - advantages and disadvantages

Many farmers keep animals in summer camps, and many do so in winter. Exercise for cows. Fresh air. Reduced care costs? Is it really that…

Gеorgiі Kukhaіleshvili
analyst
Association of Milk Producers

Between proficit and deficit: an overview of the global dairy market

Despite the decrease in prices for milk raw materials in Europe, too much export supply for dairy products and weak demand on foreign markets, attractive…

Europe is the main buyer of dairy products in 2022

Despite the war and the blockade of sea ports, in 2022 Ukraine exported dairy products worth 344.6 million dollars, which is 39% more than in 2021.

There were several reasons for this: firstly, it is the European community's assistance in the liberalization of trade between Ukraine and the EU, secondly, high world prices for dairy products during the first three quarters of the year, thirdly, the competitiveness of Ukrainian dairy products on the European market in the summer -autumn period. The exception was the fourth quarter - prices for dairy products in the world began to fall, and with them the volume of shipments.

Yana Linetska, analyst of the Association of Milk Producers, notes.

The main export categories (in monetary terms) were milk powder (26% of the total structure), butter (24%) and casein (21%). And the main sales market is Europe — due to logistical advantages, high prices, as well as the abolition of customs regulations.

Sales of non-condensed milk and cream for 2022 amounted to 29.3 thousand tons in natural terms. At the same time, in monetary terms it amounted to only 16.4 million dollars. (+58%).

At the same time, sales of dry milk and condensed milk in natural terms amounted to 26.7 thousand tons, which brought Ukraine 90 million dollars, which is 56.9% more than last year. In the overall structure of exports, sales of dry milk accounted for 26%.

The export of fermented milk products, on the other hand, decreased. During the analyzed period, 3 thousand tons of products were sold, which is 44.5% less than in 2021. In monetary terms, this brought 4.7 million dollars, which is 46% less than the year before.

The export of milk whey for the year also declined due to the logistical blockade of the seaports. After all, the lion's share of the serum went to China. In total, 15.3 thousand tons of product were sold (-31.3%) for a total value of 15.8 million dollars. (-30.9%).

Instead, butter was actively sold to Europe, which resulted in 24% of the total export structure. In total, 14.1 thousand tons of product (+29.9%) were exported for a total value of 81.7 million dollars. (+56.3%).

Against the background of devaluation, hryvnia purchases of the main imported category of dairy products — cheeses — decreased significantly, and domestic cheesemakers began to increase production, both to meet the needs of the domestic market and for export. In 2022, 9,000 tons of cheese (+29.8%) were delivered to foreign markets at a total cost of 42.3 million dollars. (+58.4%).

Sales of ice cream in natural terms fell by 7.5% to 6.9 thousand tons. However, in monetary terms, they increased by 4.5% — 19.5 million dollars.

Sales of casein in natural terms amounted to 7.3 thousand tons (+34.3%), and in monetary terms to 74.2 million dollars. (+49.2%). The main sales market of this category was also the European market.

"However, the end of the year demonstrated a change in the vector of movement of the world market — prices for dairy products began to fall, and consumer demand is also declining against the background of significant inflation. Experts predict that 2023 will not be an easy year for the global dairy community," Yana Linetska comments.

The structure of the export of dairy products in 2022, %

Press service of the Association of Milk Producers