In Ukraine, a significant increase in butter prices has been recorded over the past few weeks. This trend is associated with the activation of exports of this product to European Union countries.
This is reported by Finway
Reasons for Price Increases and the Situation in the EU Market
The rise in domestic butter prices is directly linked to the increase in export volumes. Due to high demand from European importers, a substantial portion of Ukrainian butter is being directed abroad, leading to a shortage in the domestic market and, consequently, a rise in prices for Ukrainian consumers.
“Prices in the European market have already started to decline, and the demand for Ukrainian products is also weakening.”
Expectations Regarding Price Changes in the Domestic Market
According to experts, the duty-free quota for butter exports to the EU will be exhausted within a few weeks. After that, a significant portion of the butter supply is expected to return to the Ukrainian market. As a result, sellers will be forced to lower prices to stimulate demand among Ukrainian buyers, who are currently unwilling to purchase the product at record prices.
It is forecasted that a decrease in butter prices in Ukraine could be possible as early as mid-August, as domestic consumption does not support the current price level.