The production of fresh dairy products in Ukraine in May will be 17-20% lower compared to May last year, which corresponds to a reduction in the country’s population due to mass migration abroad during the war, and also correlates with the demand and solvency of Ukrainians.
“The current situation on the Ukrainian market of fresh dairy products can be called relatively stable. Most of the leading producers have increased output to the level of real demand, which stops growing due to a decrease in the population’s solvency in war conditions,” the website of the industry analytical agency Infagro reported on Wednesday.
According to him, the increase in the production of dairy products is now inexpedient, since in the event of a further increase in its production, dairy processors will have to stimulate sales through mass promotions in retail chains.
“Not all operators can now afford such marketing steps, and networks also pay less attention to such tools, there is not enough human resources. Moreover, in the face of a further rise in the cost of logistics, some companies intend to further increase prices, even if this leads to a decrease sales,” the agency said.
It noted that in May in the market of fresh dairy products, as in April, the leading positions will be held by national companies. At the same time, their production is unlikely to continue to grow in the summer months.
As reported, the profile association “Union of Dairy Enterprises of Ukraine” predicted a decline in milk production in Ukraine in 2022 by 13.3-15.9%, to 7.33-7.56 million tons from 8.73 million in 2021 due to for the Russian military invasion.
