Ukrainian cheese makers continue to lose market share due to competition from imported products from the EU, despite the trend towards a reduction in external purchases, according to the industry analytical agency Infagro.
According to the report, producers are asking the state for support, in particular through the expansion of cashback programs for domestic cheeses and a review of the tax burden. However, experts assess the chances of significant changes in tax policy or the introduction of import barriers as low.
Analysts consider a more effective step to be the regulation of relations with retail chains to reduce significant retail markups that affect the final cost of products.
According to the agency, cheese imports are currently showing a downward trend in both monthly and annual terms, which is associated with rising prices in Europe and currency fluctuations. It is expected that the volume of foreign purchases will continue to decline.
“Despite the difficult market conditions, Ukrainian producers are in no hurry to lower their base prices. They are probably afraid that retail chains will not respond adequately to lower prices or that it will be difficult to return to previous price levels in the future. At the same time, buyers can already count on significant discounts when purchasing large quantities of products,” Infagro concluded.
The share of imported cheeses on the Ukrainian market in 2025 has grown from 38% to 45% and continues to increase. If the situation does not change, Ukrainian producers will have less than half of the market by March-April 2026, according to the Ukrainian Dairy Industry Association (UDIA).
“The current trend in the cheese market poses a threat to Ukraine’s food security and requires an immediate response from the government. If, for political reasons, anti-subsidy investigations against EU producers, primarily Poland, have no prospects, it is worth focusing on intensifying state support for Ukrainian producers,” said Arsen Didur, executive director of the UDAU.
The industry association noted that imports of rennet cheese to Ukraine last year increased by 13% compared to 2024, to 32.9 thousand tons, in particular, 15.8 thousand tons (+14%) of hard cheese were imported.
The SMU sent a proposal to the government to increase compensation under the National Cashback program for Ukrainian-produced cheese from 10% to 20%. At the same time, it is proposed to reduce or cancel compensation for other dairy products that do not face such fierce competition from imports.
As reported, Minister of Economy, Environment, and Agriculture Oleksiy Sobolev announced in January that in 2026, the Cabinet of Ministers would reduce funding for the National Cashback program. As of February 2026, the state budget allocates UAH 3 billion for this program, compared to UAH 5.7 billion a year ago. Therefore, the government plans to move to targeted support for critically important industries.
Ukrainian cheese producers are ending the year without the expected pre-holiday sales boost, although consumption traditionally increases in December, with more and more buyers preferring European cheeses because of their lower price, according to the industry analytical agency Infagro.
Analysts noted that the supply of inexpensive imported cheese on the Ukrainian market increased significantly at the end of 2025. Already, according to estimates, a significant share of semi-hard cheese sales comes from EU products, and this trend is likely to intensify.
“Sales of domestic products were supported mainly by active promotions, which had a negative impact on margins. Anticipating weaker demand in January, producers reduced production volumes at the end of the year, and at the end of the year, the output of hard and semi-hard cheeses decreased compared to last year,” experts noted.
According to their information, market participants do not expect a decline in imports next year, as European cheese remains competitive in terms of price. Even during promotions, Ukrainian cheeses are often more expensive than their imported counterparts, forcing manufacturers to either offer deep discounts or reduce production.
“Exports remain an alternative to the domestic market for some producers, where price conditions are more attractive,” analysts said.
Infagro emphasized that the processed cheese market remains relatively stable, without sharp fluctuations in demand or production, making it one of the few balanced niches in the cheese segment.
The first cheese map of Ukraine was presented in Kyiv as a unique analytical tool that systematically reflects the current state of Ukrainian cheese production, as well as a printed guide to recognized domestic cheeses for 2021-2025, according to Deputy Minister of Economy, Environment, and Agriculture Taras Vysotsky.
“The map features 65 cheeses from different regions of Ukraine that have been recognized at national and international competitions. This is not just a visualization—it is a record of the development of the Ukrainian cheese industry in recent years,” he wrote on Facebook.
According to him, the cheese map demonstrates the regional diversity of Ukrainian cheeses, confirms the competitive quality of domestic producers, forms a holistic image of Ukraine as a cheese-producing country on the international arena, and becomes a benchmark for retail, HoReCa, media, and consumers.
“Ukrainian cheeses are now recognized at international competitions – this is already a trend, not just isolated successes. Our producers demonstrate quality that competes at the global level. It is important that projects such as the cheese map help to systematically shape Ukraine’s image as a cheese-producing country,” the deputy minister emphasized.
He also thanked the ProCheese and Ardis Group teams and partners for their work, which strengthens the agri-food sector and adds another important element to Ukraine’s brand.
December is traditionally one of the most successful months for Ukrainian cheese producers in terms of sales, but in 2025, not all companies in the industry will be able to boast positive dynamics, according to the analytical publication Infagro.
“Although cheese consumption in Ukraine has likely increased, the main growth has been in imported products,” analysts noted, adding that this is due to the significant price advantage of European cheeses.
Importers purchase products in EU countries at a significantly lower price than they are produced in Ukraine, and experts predict that their cost will not increase in the near future.
The agency noted that cheese imports to Ukraine increased in November, although not as much as predicted. Imports were up 10% compared to October. Imports of “white” cheeses increased by 4%. At the same time, imports of processed cheeses decreased by 18%.
Experts hope that imports will grow more actively in December, as was the case last year.
They recalled that cheese consumption in Ukraine has not yet returned to pre-war levels, which complicates competition for domestic producers. According to analysts’ estimates, in 2025, sales of semi-hard cheeses on the domestic market will be 17% lower than in 2021. At the same time, the average Ukrainian, as before the war, consumes about 2 kg of such cheese per year, and about a quarter of this volume is European-made cheese.
“Exports of semi-hard cheeses from Ukraine remain half the size of imports. At the same time, export prices exceed import prices. In November, exports of processed cheese products also fell sharply to their lowest level since the beginning of the year,” Infagro reported.
In Ukraine, in June 2025, milk in film, kefir in tetrapak and glass, cottage cheese and Suluguni cheese fell in price, while other dairy products rose in price, the Association of Milk Producers (AMP) reported.
The industry association noted that pasteurized milk with a fat content of up to 2.6% in the film in June 2025 averaged 45.65 UAH/kg, which is 75 kopecks (-2%) less than in the previous month, but 6.48 UAH (+17%) more than in the same period last year.
Pasteurized milk with a fat content of up to 2.6% in a plastic bottle averaged 63.81 UAH/kg, which is 21 kopecks (+0.3%) more than in May and 12.29 UAH/kg (+24%) more than in June 2024. Kefir with a fat content of 2.5% in the film cost an average of 55.54 UAH/kg, which is 37 kopecks (+1%) more than a month ago and 7.98 UAH (+17%) compared to last June.
Sour cream with a fat content of 15% in glasses averaged 191.13 UAH/kg, which is 4.04 UAH (+2%) more than in the previous month and 51.17 UAH/kg (+37%) compared to the same period last year.
The average price for drinking yogurt from 1.6% to 2.8% in plastic bottles amounted to UAH 116.44/kg and was UAH 2.15 (+1.9%) higher than in May and UAH 23.24 (+25%) higher than a year ago.
The average price for cottage cheese with a fat content of 9% was UAH 279.80/kg and was UAH 7.39 (-3%) lower than the average price of the previous month, but UAH 56.50 (+25%) higher than the price in June last year.
Domestically produced butter with a fat content of 72.5% to 73% costs an average of UAH 584.82 per kg, which is UAH 11.18 (+1.9%) more than in the previous month and UAH 162.63 (+39%) more than a year ago.
Dutch cheese with a fat content of 45% averaged 590.64 UAH/kg. Compared to the previous month, the product went up by UAH 12.77 (+2%), and compared to the previous year, it went up by UAH 139.41 (+31%).
The average price of Gouda cheese with 45% fat content from Ukrainian companies averaged 593.14 UAH/kg, exceeding the price of the previous month by 5.74 UAH (+1%), and last June by 131.50 UAH (+28%).
Over the past month, prices for pasteurized milk with a fat content of up to 2.6% in film, kefir with a fat content of 2.5% in tetrapak and glass, cottage cheese with a fat content of 9%, and Suluguni cheese have fallen in Ukraine. Prices for other dairy products in the consumer basket either remained unchanged or went up by 2.9% on average, said AVM analyst Giorgi Kukhaleishvili, quoted in the report.
He noted that butter is rising in price following high global commodity prices. In particular, the price of butter in the EU in May was at the level of EUR7200-7400 per ton, which is almost a record high that has not been recorded since 2017-2018.
Increased supply and consumption of imported cheeses in the domestic market hampers sales of domestic cheese producers. The share of imported cheeses in the domestic market reached 47%, the association stated.
