Skimmed Milk Powder Prices Recover, While Exports Continue to Decline
Following the decline recorded at the end of June, European skimmed milk powder (SMP) priceshave begun to recover. This has allowed Ukrainian exporters to return to their usual price levels, although some traders continue to seek lower purchase prices.
This was reported by Infagro.
Despite the improvement in market prices, exports of skimmed milk powder continue to decline. According to analysts, this is due to increased production combined with subdued domestic demand resulting from high product prices. As a consequence, part of the production may accumulate in manufacturers’ inventories.
During the first half of the year, exports of skimmed milk powder were lower than in the corresponding period of last year. At the same time, the European Union remains the key export market, where Ukrainian suppliers have already nearly exhausted their duty-free quota despite the introduction of an import licensing mechanism.
Analysts note that the higher price level on the European market remains the key factor supporting exports of Ukrainian products.
In June, Poland was the largest importer of Ukrainian skimmed milk powder, accounting for nearly 25% of total shipments. Bulgaria and Lithuania also ranked among the three largest destination markets.
