High prices: a challenge for Ukrainian cheeses on the market

Ukrainian cheese producers are experiencing difficulties due to competition with imported products caused by high prices on the domestic market. This situation led to a decrease in sales of Ukrainian cheeses and an increase in the volume of imports. Data on this are provided by the analytical company "Infagro".

In March of this year, the volume of imports of cheeses to Ukraine increased by more than 40%, and this trend is also predicted in April, with an increase in the volume of imports by 15-20%. As a result, the share of European cheeses in the total volume of sales on the Ukrainian market has already exceeded a third.

Even though the share of imports is currently smaller than before the war, cheese producers have to make efforts to maintain their positions in the domestic market.

At the same time, the devaluation of the hryvnia stimulates the export of Ukrainian cheeses, as it becomes more profitable. However, in some foreign markets, in particular in Kazakhstan, Ukrainian products were almost completely displaced by Russian manufacturers. If the export of the raw product to Kazakhstan stops, then its production in Ukraine will be forced to significantly reduce.

Consequently, high product prices complicate the situation for Ukrainian cheeses in the domestic market, and difficult competition in foreign markets limits the industry's export opportunities.