Reduction of butter prices in Ukraine
Butter prices in Ukraine are set to drop by 30-35% before the New Year holidays, with a trend for further decline until mid-2026. This is happening against the backdrop of falling prices in the European market, which has significantly affected the cost of dairy products in Ukraine.
According to data, prices for fatty dairy products in Ukraine are decreasing, while world prices for butter have fallen by more than 30% since the end of summer. Ukrainian exporters previously sold butter in EU countries for 7 euros per kilogram, but now the price has dropped to 4.5 euros. This decline has also affected the purchasing prices for raw milk, which has already started to become cheaper.
Cost of milk and impact on producers
In mid-November, the price of 'extra' class milk fell by 17%. Some dairy product manufacturers are operating 'at cost', while others are incurring losses. The main reason for the reduction in dairy product prices, according to expert Olena Zhupinas, lies in the decrease in prices in the European market.
“Such a decrease has significantly affected the purchasing prices for raw milk, which in turn reflects on the retail prices for consumers.” - Olena Zhupinas
The reduction in dairy product prices in Ukraine, particularly for butter, is a result of global economic trends, indicating a close integration of the Ukrainian market with the European one. This will likely have a positive impact on consumers as the price drop makes dairy products more affordable, but it may also pose challenges for producers operating on the edge of profitability.
Further monitoring of the price situation in global markets will be important for forecasting developments in this area.