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.
