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Butter Trade & Export  2016 (HS Codes 0405101900, 0405101100) – Review

Butter Trade & Export 2016 (HS Codes 0405101900, 0405101100) – Review

Global demand for Dairy products (Butter)  has generally deteriorated throughout year 2015 and in the first months of 2016. We observe further reduction in Butter price as the result of oversupply (increase production in NZ and EU ) and weak imports  from China, Russia and Northern Africa region. The situation is uncertain  and may  change significantly before the end of year 2016, according to the market experts of EMC Abbottpm.

On one hand, existing pressure on Butter and SMP  manufacturers  will remain and  price may further fall  throughout summer months of year 2016. It is in line with  seasonal butter prices decline, however,  current price (Q2 2016)  is low not only compared to the high levels reached back in 2014 but also compared to the average of the last 5 years. The gap between highest and lowest price in the EU and worldwide had increased and dairy producers reached limits set by the cost of producing the milk.

On the other had 1 March 2016, was the date then new cycle of EU Dairy Intervention and anti-crisis measures had started (as set by the¬† EU Regulation ¬†No 1308/2013) Later ¬†provides EU milk operators and farmers with some degree of ¬†market certainty in form of safety net for¬† agricultural¬† markets¬† as¬† part¬† of single¬† common market regulation (sCMO). EU-wide Public market buying-in is a system whereby product is purchased¬† by the public authority ¬†in each member state when prices are low and sold back into the market when the price recovers, alternative to sale can be ¬†distribution to non-profit organizations (UN, other aid agencies ). Such measures cater for a situation where EU prices deteriorate ¬†and ‚Äúreference thresholds‚ÄĚ ¬†for intervention set at:

  • Butter – ‚ā¨ 2,217per MT
  • SMP – ‚ā¨ 1,698 per MT

Intervention  buying for  the dairy sector in EU  were in place in 2009/10, (81,891 tonnes  of  butter  and  273,682  tonnes  of  SMP  were  purchased)  and  in 2015/16 (60,000 tonnes of Butter & 109,000 tonnes of SMP). Quantities offered into intervention through 2016/17 are likely to remain significant even despite real chance that  Russia market can be re-opened for EU dairy as soon as in Q4 2016 . It should be noted that later factor is rather political, and it makes forecast of export and price effect  less predictable.

Note РRussian government ban on the import of agricultural products (SMP, Cheese, Butter, other Dairy) originated in the EU in place till 6 August 2016. 

Note РRussian government ban on import of Ukrainian Dairy products (until further notice) in summer months only  creates surpluses capacity on the local Ukrainian market of butter and SMP.

We offer buyers from other regions  take advantage of the current short lasted situation with abnormally low prices and buy Butter and SMP from Ukrainian manufacturers at significant  discount  (current Ukraine price is under EU reference  thresholds)  this opportunity will  not last long.

Abbottpm represents  Ukrainian  Butter and SMP  manufacturer at global markets. Therefore we offer

  • direct export contract
  • no commission¬†
  • same day CIF quote –(if submitted before¬†11.30¬†am ¬†– container shipment, volume up to 100 tonne )
  • competitive price on large volumes ( 100+ tonnes) ¬†
  • fast test¬†consignment¬†(5-18 MT )¬†
  • LC payment¬†
  • Free and fast sample shipment¬†upon confirmed LC ¬†

GET in touch today if you are looking to buy  Butter  wholesale.

  • Please fill the form ¬†GET THE QUOTE on your right or send as LOI ¬†>>>>>>>>>>>
  • ¬†Price of butter¬†¬†can be found at – it-biS HS code search¬†( available in Ukrainian only )

 

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