Sales of Ukrainian cheese have stopped growing in Ukraine amid rising imports, and the prospects for domestic cheese sales in foreign markets are not good, according to Infagro, an industry analytical agency.
“In the short term, cheeses will not become cheaper, but promotions with big discounts will become widespread. And even price discounts will not save all producers, as cheese imports have increased significantly,” the analysts said.
According to their information, European cheese is very cheap and it is becoming increasingly difficult for domestic producers to compete with it in the Ukrainian domestic market. In the first quarter, imports of hard, semi-hard and white cheese increased by 12%. This included a significant amount of hard/semi-hard cheeses, which are the most competitive for domestic cheese producers. Imports of processed cheese increased by a quarter.
At the same time, there is no certainty that imports will increase significantly in the future. The devaluation of the hryvnia scares importers away a bit, experts suggest.
They pointed out that due to the worsening problems with sales in the domestic market, Ukrainian cheese producers are trying to increase exports, but they do not always succeed.
“Export sales of semi-hard cheeses fell by 11% in the first quarter compared to the same period last year. The dynamics of exports of semi-hard cheese products looks even worse. Their sales in the first quarter fell by almost a quarter. In the future, exports of this product will fall even more significantly,” Infagro predicts.
