During Christmas, butter prices will drop in Ukraine due to lack of demand

In Ukraine, butter prices are expected to drop before Christmas due to a sharp decline in demand and overproduction. Some dairy processing plants have already been forced to halt production as there are no sales for the accumulated products, and operating at capacity has become economically unfeasible. This is reported by Economic Truth.

Butter in Ukraine is getting cheaper due to falling global prices

In the fall, the Ukrainian dairy market faced a serious blow. For the first time in years, butter production fell below previous levels, and warehouses filled with about 10 thousand tons of finished products. Global prices for dairy fats began to plummet since August due to overproduction in the USA and New Zealand.

On global exchanges, butter prices fell by more than 12% just on December 2. The situation in Europe is similar:

• in summer, the price per ton was approximately 8500 euros

• in autumn, the price fell to 5500 euros.

For Ukrainian producers, this is a critical signal, as the production cost of Ukrainian butter is about 6500 euros per ton. In the EU, it is sold for 5700 euros, making exports almost impossible.

Butter producers are halting production and reducing exports

According to Olena Zupinas, head of the Milk Producers Association, last year Ukrainian companies shipped butter to the EU for 7 euros per kilogram. Now the price does not exceed 4.5 euros. Selling below the production cost is not feasible for the business, so in October, exports plummeted by 22%.

This could lead to a wave of sales and a noticeable price drop in the domestic market before Christmas. At the same time, experts warn: market stabilization is only possible after global demand is restored.

It should be reminded that the truth about butter counterfeiting has been revealed to the Ukrainian public. Thanks to a study conducted by a famous TikTok blogger, @poishla29, it was found that some well-known butter brands are actually counterfeit.