Rising imports are hitting cheese producers in Ukraine: domestic products continue to get cheaper
17 March 13:35
In March, the situation on the Ukrainian cheese market stabilized, but supply continues to exceed demand. To attract consumers, sellers are lowering prices. Some domestic producers have not yet resumed their previous production volumes.
This was reported by Infagro, according to [Komersant].
Cheese imports from Europe
The main reason for the pressure on the market is the increase in shipments of inexpensive products from EU countries. After a decline at the beginning of the year, importers have once again increased volumes. In February, import figures rose compared to January and the same period last year.
The share of hard and semi-hard imported cheeses in the total market supply was about 25%. A growth in processed cheese imports by several dozen percent was also recorded. Experts attribute this to insufficient expansion of the product range by local enterprises.
Imports and Competition
Although cheese prices in Europe are gradually rising, imports to Ukraine will continue under previously signed contracts. A reduction in shipments is expected toward the end of spring due to currency factors and increased procurement costs. Ukrainian factories remain profitable thanks to flexible discounts for distributors.
Exports of Ukrainian Products
Export prices for Ukrainian products are stable. There is a positive trend in exports, although in certain segments, imports into Ukraine significantly outweigh exports.
The situation with semi-hard cheese products is characterized by growing exports, but a decline is possible due to shifting production priorities. The greatest risks are observed in the processed cheese segment: the escalating security situation in the Middle East has complicated logistics to key sales regions.
