Butter plant in Ukraine warns of shutdown due to 10-fold increase in gas prices

‘Yahotynsky Butter Plant’ (Kyiv region), the biggest in Ukraine, is on the verge of stopping its activities due to a tenfold rise in gas prices, Report informs citing TASS.

The company notified its partners about this by sending a letter, a copy of which was published on social networks on January 5.

“The crisis situation in the milk processing sector <...> has reached its climax. The cost of gas alone is 10 times higher than last year. Starting from January 1, 2022, the Yahotynsky Butter Plant is forced to fulfill your requests for the supply of products in part, with a further production stop,” reads the letter.

The management of the plant stressed that upon reaching financial and economic stabilization, the supply of products will be resumed.

Earlier, market participants noted that the price of gas over the past year for the dairy industry increased almost 10 times - up to 50 hryvnia ($1.9) per cubic meter, electricity - 2.5 times, containers and packaging - by 42%, prices for raw milk - by 25%. Against this background, they consider the production activities of the dairy industry inappropriate.