Ukrainian margarines market stable despite a production decrease

The first months of the past year 2018 featured an upturn in Ukrainian margarine production, and optimistic forecasts were made at the time that the margarines market would further recover by the end of the calendar year. However, from April on, their production was behind the previous year (2017), when a rise was achieved for the first time in seven years, reports UkrAgroConsult.

According to official statistics, the 2018 output of margarine products amounted to 219.5 KMT. This was 4.2 KMT (1.9%) less than in 2017, but still above the 2015-16 level.

Taking into account that margarine products are still export-oriented articles, the decrease in their output affected export statistics, though without having changed the overall market situation significantly.

A substantial slump in exports of both margarine and special fats was seen in 2015-2016. Then, by 2018, their shipments to foreign markets had almost doubled.

The current situation in Ukraine’s margarines market certainly envisages no production slump – it even suggests that the 2019 margarine output will total 210-215 KMT (UkrAgroConsult’s estimate). Provided Ukrainian exporters more actively look for new foreign markets to sell the products, this volume may even reach an optimistic 220-225 KMT.