Main points
- Polish suppliers plan to sell cheese on the Ukrainian market at dumping prices, which may complicate the situation for local producers.
- Ukrainian producers are forced to review their pricing strategy and intensify promotion to compete with cheaper imports, as the state program “Buy Ukrainian” may not be effective enough.
Poles sell cheese / Photo Unsplash
A temporary reduction in cheese imports has given Ukrainian producers a short break, but the situation could change quickly. A new wave of European products is expected on the market in the near future.
Poles want to sell cheese in Ukraine at dumping prices
A short period of reduced cheese imports allowed Ukrainian producers to somewhat stabilize the situation, but next month the market is forecasting a new wave of supplies of the European product. This is reported by INFAGRO analysts.
According to their estimates, Polish suppliers are actively considering the Ukrainian market as a destination for selling surplus products. In order to sell their goods faster, they are ready to apply a dumping pricing policy.
In such conditions, Ukrainian manufacturers will have to reconsider their pricing strategy in order not to lose part of the market. The state program “Buy Ukrainian” with cashback may partially support sales, but without active promotion and cooperation with retail chains, its effect may be limited. Most buyers are primarily guided by the lower price when choosing, so cashback is not always a decisive factor.
Currently, base prices for distributors remain almost unchanged, while the retail cost of products is significantly higher. This forces manufacturers to run promotions and offer discounts to compete with cheaper imports. However, not all companies can consistently support such campaigns, which leads to the loss of space for their products on store shelves.
What are the forecasts for the Ukrainian cheese market?
Experts predict that the production of semi-hard cheeses will remain stable or may increase slightly in the near future – much will depend on the volume of cheap imports. At the same time, the production of cheese products is still maintained at a high level, although export prices remain low.
In foreign markets, prices for natural cheese generally remain relatively stable, but for certain areas, producers have to offer additional discounts.
Analysts note that without a review of pricing policy and more active promotion, it will be increasingly difficult for Ukrainian producers to compete with European imports.
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