As Ukrainian producers focus on exports, the price of butter from domestic manufacturers may also decrease. Reports OBOZ.UA. This information is provided by Kontrakty.UA.
The United Nations Food and Agriculture Organization (FAO) has announced that global food prices overall declined in December 2024 – meat prices increased, but this was more than offset by falling prices for sugar, dairy products, vegetable oils, and grains.
"International quotations for butter showed the most significant decline, ending a 14-month streak of continuous growth due to subdued global demand and accumulated stocks,” the report states.
However, the average value of the FAO Dairy Price Index for 2024 was 129.6 points – this is 5.8 points (4.7%) higher than the figure for 2023. This is mainly attributed to a sharp increase in butter prices amid high global demand for this product and limited export supplies due to unstable weather conditions that adversely affected production.
Overall, the FAO Food Price Index in December 2024 was 127.0 points, a decrease of 0.5% compared to the November level. This is still 6.7% higher than a year ago, but 20.7% lower than the peak value reached in March 2022 following Russia's invasion of Ukraine.
In November of last year, dairy prices in Ukraine indeed rose sharply, resulting in an increase in butter prices by 6.9%, cheese by 2.9%, and milk and yogurt by 10-15%. On average, a pack of sweet cream butter cost 100 UAH. The reasons include the influence of global prices, rising raw material costs, energy prices, and issues with logistics and packaging.
Additionally, OBOZ.UA reported that apple prices in Ukraine are also reaching record highs. Analysts believe that these prices cannot remain high for long, as local consumers simply cannot afford to buy them, although high prices may persist in the export market for the long term.