Ukrainian dairy exports up 29.8% in May - Association of Milk Producers

MOSCOW. June 7 (Interfax) - Ukrainian producers increased dairy exports by 29.8% to 9,760 tonnes in May month-on-month, Ukrainian media said quoting the Association of Milk Producers of Ukraine.

Export revenue grew by 16.1% to $22.53 million. Powdered and condensed milk accounted for 25.57% of the export revenue, fluid milk and cream for 21.89%, milk whey for 16.75%, and ice cream for 14.68%.

Ukraine exported 2,140 tonnes of fluid milk and cream in May, a 22.37% growth month-on-month, for $1.22 million, which is 19.27% more than in April. Moldova accounted for 93.2% of these exports.

Ukraine's exports of powdered and condensed milk stood at 2,490 tonnes in May, 39.23% more than in April, and totaled $6.03 million, a 35.69% increased from the month before. Around 62% of these products were shipped to the European Union.

Ukraine also exported 321 tonnes of fermented milk products in May, which is 37.59% more than in April, for 397,000 tonnes, a 32.75% growth from the previous month. Moldova, the United Arab Emirates and Armenia accounted for about 99.6% of these exports.

In addition, Ukraine exported 1,630 tonnes of milk whey to foreign markets in May, a 36.64% increase from the previous month, for $1.02 million, which is 26.82% more than in April. The main markets for Ukrainian milk whey in May were China (30.6%), Poland (26%), as well as Malaysia, Jordan, Libya, the Philippines, Vietnam, Saudi Arabia, Turkey, Lebanon, and Moldova.

Cheese exports went up 27% to 705 tonnes in May, amounting to $3.24 million, which is 20.66% more than in April.

Ukraine also exported 1,430 tonnes of ice cream in May, 62.78% more than in April, for $4.52 million, a 62% growth from the previous month. Countries of the European Union accounted for 53% and Moldova for 30.42% of these exports.

The only dairy product the export of which declined in May was butter. Its export dropped by 45% to 558 tonnes, and revenue declined by 48% to $4.28 million. The markets for butter export from Ukraine were Moldova and Azerbaijan (61%).

The association's lead analyst Georgy Kukhaleishvili believes that the growth of Ukrainian dairy exports in May benefited from the lifting by the Polish, Hungarian, Slovak and Bulgarian governments of the ban on the import of Ukrainian agricultural products.

"The majority of dairy products imported from Ukraine to the EU are subsequently transported to third countries' markets via the Black Sea or Danube ports of Romania or through Poland's Baltic ports. The EU market's demand for dairy products is limited, while local consumers are not interested in Ukrainian goods. Warehouses in European countries have accumulated such a large amount of commodities that they cover the demand on the internal market," the analyst said.

At the same time, Ukraine cut dairy imports 4.2% to 4,970 tonnes in May month-on-month, the association said, blaming the decrease first and foremost on the reduction of the import of milk and cream with a long shelf life, cheeses and condensed milk from European countries to Ukraine.

Meanwhile, European countries increased deliveries of butter (by 25.19% to 74 tonnes), fermented milk products (by 11.37% to 829 tonnes) and milk whey (by 7.14% to 567 tonnes) to the Ukrainian market in May, thus creating undesirable competition for Ukrainian producers on the domestic market, the association said.