Main points
- The Ukrainian cheese market remains stable, but faces challenges in the form of declining demand and competition from imported products.
- Imports of rennet cheeses decreased in April, but the total volume of imports since the beginning of the year exceeds last year's figures, which puts pressure on Ukrainian producers.
What's happening at the cheese market / Photo by Magnific
The Ukrainian cheese market remains relatively stable even ahead of the summer season, when demand traditionally weakens. However, producers continue to operate in conditions of lower sales and tough competition from imported products.
The cheese market remains stable, but without growth
Despite the end of spring and the traditional seasonal decline in demand, Ukrainian cheese producers are not yet talking about a crisis situation. According to INFAGRO analysts, the market is currently maintaining relative stability.
However, a positive assessment does not mean the absence of problems. Sales of cheese products remain weaker than in previous years, and the summer season traditionally adds new challenges to producers due to reduced consumer activity.
Market participants say that the main problem for the industry is not seasonality, but the increasing pressure of imported products, which actively compete with Ukrainian cheese on store shelves.
Imports have decreased somewhat, but risks remain
In April, imports of rennet cheeses decreased compared to March. The most noticeable decrease was in deliveries of hard and semi-hard cheeses – by almost a fifth.
However, this has not yet changed the overall picture on the market. Since the beginning of the year, imports of such cheeses have still exceeded the figures for the same period last year.
For Ukrainian cheesemakers, this trend remains a worrying signal. Producers fear that the significant presence of imported products will continue to hinder the recovery of sales and intensify competition for buyers.
Price wars are becoming the main tool of struggle
The market expects that importers may partially reduce purchases of European cheese due to the increase in product prices in EU countries. At the same time, Ukrainian companies are trying to use this moment to strengthen their own positions.
To remain competitive, domestic producers are increasingly selling cheese at significant promotional discounts. This strategy helps retain buyers, although it also puts additional pressure on business profitability.
At the same time, importers are also actively using marketing promotions and special offers. As a result, competition in the cheese market is increasingly shifting to the realm of price competition, where producers have to find a balance between sales volumes and profitability.
What are the prices for cheese in stores?
According to the Ministry of Finance, the following prices for cheese have now been set in supermarkets of large Ukrainian chains:
Como traditional hard cheese 50%.
- Auchan 549 hryvnias per kilogram;
- Megamarket 611.50 hryvnias per kilogram;
- Metro 570.96 hryvnias per kilogram;
- Novus 589 hryvnias per kilogram.
- ATB 59.50 for a 135 gram flow pack.
World milk prices have risen again
According to monitoring data, prices for dairy products, and in particular cheese, are increasing not only in Ukraine.
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The Global Dairy Trade dairy price index rose 1.5% after three sessions of declines.
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The prices of mozzarella cheese (by 4.7%) and skim milk powder (by 3%) increased the most.
Analysts note that prices for skim milk powder continue to grow steadily. Since the beginning of the year, this product has risen in price by almost a third, which indicates stable demand on the world market.