Ukraine increased the volume of dairy product exports, taking advantage of high commodity prices and a certain activation of demand in export markets, reports Georgii Kukhaleyshvili, analyst at the Association of Milk Producers of Ukraine.
According to preliminary data from the State Statistics Service of Ukraine, in January 2024, 8.1 thousand tons of dairy products were exported. Compared to December, the natural volumes of exports grew by 12%, and compared to January 2024, they increased by 23%.
The main export categories in December were as follows:
- Condensed milk and cream – 29%
- Uncondensed milk and cream – 21%
- Whey – 18%
- Cheese – 12%
Compared to December 2024, Ukraine increased the natural volumes of butter exports to 749 tons (+71%), ice cream to 490 tons (+37%), condensed milk and cream to 2.33 thousand tons (+16%), whey to 1.44 thousand tons (+12%), buttermilk to 422 tons (+10%), and cheese to 935 tons (+9%). However, over the past month, Ukrainian exporters reduced the volume of uncondensed milk and cream exports to 1.72 thousand tons (-9%) and did not export casein.
Compared to January 2024, the natural volumes of butter exports increased by 198%, ice cream by 77%, whey by 55%, cheese by 52%, buttermilk by 42%, and condensed milk and cream by 38%. Ukrainian exporters shipped 32% less uncondensed milk and cream than last year.
Georgii Kukhaleyshvili suggests that Ukrainian companies intensified their export activity in January 2025, taking advantage of high commodity prices worldwide. In particular, butter and cheese prices rose during three consecutive GDT trading sessions since the beginning of 2025. Whole milk powder and skim milk powder became more expensive during the last two auctions. According to the USDA, due to the reduction in milk production in Oceania, the production volumes of New Zealand butter decreased. Cream prices in Europe remained high despite increased supply during the market lull over the New Year holidays. The amount of butter produced in Europe was lower than last year during this period.
There was demand for large wholesale batches of butter on the European market. According to the USDA, in the last week of January, prices for fats and whole milk powder in Western Europe rose, and the price of 82% fat butter was $7,600 per ton at the lower end of the range. At the beginning of January, this butter cost $7,350 per ton. In 2024, butter was the main driver of commodity prices globally. In January, there was an increased demand for butter, cheese, and dry milk in export markets, likely related to preparations for the Chinese New Year and Ramadan.
In January, Ukraine imported 5.02 thousand tons of dairy products, which is 34% less compared to December and 6% less compared to January 2024. Compared to December 2024, Ukraine increased the volumes of whey imports to 628 tons (+17%), butter to 615 tons (+165%), and ice cream to 51 tons (+53%).
Press Service of the Association of Milk Producers
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