Dairy products, like most other food products, are becoming more expensive worldwide

Increasing global demand for butter, SMP and SPM, as well as the desire of traders to increase stocks, led to the fact that the value of the FAO Dairy Price Index for October rose by 2.6 points compared to September. – PioneerProduct

In general, food in the world is now a record expensive for the last ten years. But the rise in prices will not continue forever. Analysts expect them to collapse in 2022. The main reason for this conclusion is the current poor state of the Chinese economy, as a result of which the country is likely to reduce imports of dairy products. it should be recalled that it is CHINA , as the world's largest importer, that has set global pricing trends in recent years.

Ukraine is now only indirectly dependent on world market trends, since it has meager volumes of dairy exports. However, the global rise in prices affects the reduction of imports into the country. For example, if at the beginning of autumn decent volumes of European oil were imported to Ukraine, now the price for this product in Ukraine is already noticeably lower than in the EU. Imports of this product have practically ceased. Apparently, the volume of purchases of cheeses will also decrease in the near future.

In the current situation, domestic producers of dairy products, on the one hand, got a good chance to increase prices. But on the other hand, the high cost of raw materials, energy resources and the monopoly of retail chains prevent them from earning.

It is difficult to fight retailers, but it is still somehow possible. The rise in prices for raw MILK is now managed to be somewhat restrained. But the cost of gas and electricity will not be affected. Therefore, the upcoming winter for domestic dairy producers will be very difficult.

PioneerProduct