Ekaterina Zakharova: Butter prices are growing quite dynamically this year

‘Butter prices are growing quite dynamically this year,’ Ekaterina Zakharova comments. ‘For example, at the BUCE auction, the price of butter increased by 42.7% compared to the beginning of 2021, at the Trigona Dairy Trade auction, the average price of butter increased by 61% compared to the beginning of the year, at the Global Dairy Trade auction, the price increased by 22%.

And the growth continues, said the leading analyst of DIA. At the GDT auction on November 16, growth was observed in all positions, including butter.

‘Prices rise when there is demand, in 2021 China is quite actively increasing imports, including butter,’ said the expert.

Against the background of rising prices for exchange-traded products, the price of imports to Russia is breaking records. According to DIA, the import price of exchange-traded dairy products to Russia in mid-November 2021 reached 40.75 rubles/kg, 18.6% higher than November 2020 and 16% higher than at the beginning of 2021. In dollars, the import price was $0.57/kg, 1.14% higher than last week's level and 28.4% higher than in mid-November 2020. The price of a pair of skimmed milk powder + butter (1 kg in terms of milk) was 47.67 rubles / kg, 29.3% higher than at the beginning of 2021.

‘The rise in prices for exchange-traded products on the world market pushes up the prices of raw milk. Dairy Index DIA also peaked in recent years in autumn 2021 and is currently 31.54 rubles/kg (excluding VAT, fat-3.6%, protein-3.0%), 11.4% higher than in November 2020,’ Ekaterina Zakharova cited DIA indicators.