In 2025, Ichnia Milk and Canning Plant PJSC (ICCP, Chernihiv region) will launch a cottage cheese production line, for the construction of which it has raised UAH 150 million under the state program “Affordable Loans 5-7-9%” and will build a dairy farm, according to Vitaliy Koval, Minister of Agrarian Policy and Food.
“I visited the company and talked to the management. Despite the war, the plant has not stopped. Today, it employs about 300 people. The average salary at the enterprise is over UAH 19 thousand. Last year, they paid UAH 28.7 million to the budgets of various levels,” he said during a visit to the plant as part of a working trip to Chernihiv Oblast.
According to him, the company’s plans for 2025 include not only the launch of a new line with a capacity of 300 tons per month, but also the construction of a farm for 4,000 cattle.
Mr. Koval noted that Ichnia Dairy and Cannery manufactures its products according to international standards. The production capacity of condensed milk is 24 thousand tons per year. The company exports its products to Asia, Africa, America and Europe. In the first nine months of 2024 alone, this amount amounted to 3.3 thousand tons.
“The Ministry of Agrarian Policy supports the export orientation of Ukrainian processors, as one of our priorities is to open new markets for domestic products. And the management of Ichnia Dairy and Cannery already has experience that they can share with their colleagues,” the Minister of Agrarian Policy summarized.
“Ichnianskyi Dairy-Canning Plant is part of the Proviant group of companies, which is a distributor and exporter of condensed milk produced by the plant. Proviant LLC is a member of the group of the same name along with other companies engaged in the production and sale of dairy products.
According to the information in the NSSMC disclosure system, the shareholders with large stakes in IMCC are Proviant LLC, which owns 53.7% of the shares, and Hyperion Invest Closed Non-Diversified Venture Corporate Investment Fund, which owns 43.92%.
According to information on its website, IMCC occupies about 25% of the domestic market in the segment of products it produces (bottled milk and condensed milk) and exports them to 38 countries. Its brands are Ichnia, MamaMilla and Milada.
Sales of cheese on the domestic market are becoming more difficult, but cheese makers continue to actively produce it, as they consider cheese making more attractive than the production of exchange dairy products, Infagro news agency reported.
“Sales managers have to constantly work in promotions to get rid of stocks in warehouses. Promotional discounts can be quite significant. Such cheese is already becoming competitive with imported counterparts, which are also massively sold in promotions,” analysts advise and point out that European suppliers are becoming less interested in supplying cheese to Ukraine, and they will not rush to increase volumes in the future.
According to experts, due to difficulties with sales in the domestic market and the devaluation of the hryvnia, cheese exports are becoming even more important for producers. It is especially interesting for exporters to Kazakhstan.
“Production of semi-hard and white cheese may even increase in May. At the same time, many products have been stored in warehouses, and in June the production of such cheese should decrease significantly,” Infagro predicts.
Ukrainian cheese makers are facing a decline in sales due to both the high price of Ukrainian cheese and rising imports, according to Infagro, an industry news and analysis agency.
“In March, cheese imports increased by more than 40%, and in April this figure may increase by another 15-20%. That is, the share of European cheeses again accounts for about a third of total cheese sales in Ukraine,” the analysts said.
They emphasized that the share of imports in Ukraine’s domestic market is still lower than before the war, but this should force producers to take measures to stay in their own market.
“Due to the devaluation of the hryvnia, cheese exports are becoming even more profitable. At the same time, exports of cheese products, for example, to Kazakhstan, are falling rapidly. Ukrainian cheese products have already been practically pushed out of the Kazakh market by Russian producers. If exports of cheese products to Kazakhstan stop, production will have to be significantly reduced,” Infagro predicts.
Ukraine exported 2.082 thousand tons of cheese in January-March 2023, which is 2.04 times more than during the same period of 2022. According to customs statistics, in monetary terms, exports were $10.212 million, which is 2.3 times more than a year earlier.
At the same time, the volume of cheese imports was 24.9% less – 7.084 thousand tons in January-March this year. In monetary terms, imports decreased by 8.5% to $43.520 million compared to the same period in 2022.
In this case, the main export of cheese was carried out in Kazakhstan (54.17% of supplies in monetary terms), Moldova (23.86%) and Jordan (5.39%), imports – from Poland (42.39%), Germany (21.23%) and the Netherlands (8.96%).
Ukraine imported 33.818 thousand tons of cheese in 2022 (a decrease of 38.7% compared to 2021), while exporting 8.989 thousand tons (an increase of 29.8%). Exports of butter rose by 29.9% to 14.104 thousand tons last year, while imports fell by 8.21 times to 1.128 thousand tons. Exports of milk and cream (condensed) amounted to 26.696 thousand tons (+19%), while imports – 1.214 thousand tons (a 6.4-fold decrease).
Cheese makers in central and western Ukraine meet the current needs of Ukrainians in cheese, since demand for it is limited due to the departure of consumers from the occupied and frontline territories and abroad, according to the website of the analytical agency Infagro.
“Cheese logistics are getting better, chains have partially resumed direct deliveries to stores, despite the non-working shopping and entertainment centers in many regions. The shelves of working stores have almost been freed from imported assortment. Relatively good sales are in western Ukraine, where migrants have moved,” the message says.
According to the agency, in March prices for Ukrainian cheese did not change compared to February this year.
It is specified that the export of Ukrainian cheese this month will be quite insignificant, only Moldova is available for domestic supplies.
At the same time, cheese imports to Ukraine in February were still significant, 3,600 tonnes were purchased, of which 1,500 tonnes of hard/semi-hard and 600 tonnes of processed cheese.
“Now most of the cheese brought in February has either been sold out or stuck somewhere in distribution warehouses. Most likely, cheese will be brought from Europe as humanitarian aid,” the agency summed up in the message.
Exports of cheese from Ukraine in January 2021 in kind increased 24.2% compared to January 2020, to 410 tonnes.
According to the State Customs Service, the export of cheese in monetary terms amounted to $1.43 million last month, which is 19.1% more than in January 2020.
At the same time, the volume of cheese imports to Ukraine in January did not change, remaining at the level of 2,800 tonnes, and in monetary terms increased by 8.3%, to $13.38 million.
Exports of Ukrainian butter in January 2021 decreased 7.9% compared to January 2020, to 684 tonnes, and in monetary terms it fell by 15%, to $2.96 million. Imports of these products decreased 42%, to 585 tonnes ($2.74 million).
According to the ministry, the export of milk and cream (condensed) in January 2021 increased 18.4% compared to January 2020, to 1,930 tonnes, and in monetary terms it grew by 12% to $4.14 million, while imports of this group of goods doubled, to 470 tonnes ($1.14 million).
