Prices of skim milk powder decline to unacceptable level for Ukrainian exporters

KYIV. June 23 (Interfax-Ukraine) – The decline of global prices of skim milk powder has resulted in the reduction of European traders' purchase prices of Ukrainian products to the level which is unacceptable for Ukrainian exporters with the stable hryvnia exchange rate.

State-run enterprise Derzhzovnishinform said in a press release that processors have to cut the price of fresh milk to retain the acceptable margin. Now milk is bought at UAH 4.20 per kilogram on average.

"Exports prices of this type of product are $1,250-1,400 per tonne. Restricted sales and low prices affected the butter market: the price of butter with 82% fat content starts from $2,300 per tonne for non-CIS countries. In the CIS it costs $2,500-2,600 per tonne.

"Consumers on the domestic market do not hurry to buy large volumes, understanding that sellers have no other way but to cut prices. Today the prices on the domestic market are UAH 59,000-63,000 per tonne," Derzhzovnishinform said.