Ukraine’s international trade in dairy products: results of 2020
Quarantine restrictions had impact on international dairy trade. Governments of some countries focused on supporting local dairy sector and the national consumer As the previous year showed, these are two weak points in Ukraine, reports the analytical department of the Association of Dairy Producers.
2020 was very unusual in terms of foreign trade in dairy products: Ukraine lost its status of net exporter. By the end of the year, foreign trade balance in dairy amounted minus 77.6 million dollars.
In fact, Ukraine acquired its title of net importer through two import groups: fermented milk products and cheeses. Sharp increase of the share of imported products is displayed on supermarket shelves: they are full of cheap imported yogurts, cream, and cheese.
Total value of fermented milk products supplied last year was 14 million dollars. or + 54.8% compared to 2019, and cheeses, respectively 210.5 million dollars or + 93.3%.
On the other hand, exports by main dairy groups decreased by 9-40%, namely:
Exports of condensed milk and cream decreased by 21.3% to $ 12 million,
Exports of condensed milk – reduced by 27.5% to 55.7 million USD,
Export of butter – reduced by 36.5% to $ 49 million.
Increase in exports was registered only for whey - plus 21.5%, to 22.3 million dollars. Due to attractive prices on the world market, exports of casein in monetary terms increased by 161.8% last year, which earned Ukraine $ 38 million.
In general, exports of dairy products in 2020 decreased by 17.3% - to 226.6 million dollars, and imports increased by 99.9% - to 304.2 million dollars, or 113% in kind.
Along with the decline in number of cows and total milk production, this indicates that the domestic dairy industry continues its downward trend.