Ukrainian dairies are reducing production: the reason is cheap imports from the EU

The situation in the cheese market in Ukraine

Ukrainian cheese producers are reducing their production volumes due to competition from cheaper imports from the European Union, despite stable demand for their products. The reduction in production is caused by the fact that the EU provides a lower price for cheeses for Ukrainian retailers, complicating the situation for local producers.

At the same time, it is forecasted that prices for fatty dairy products in Ukraine will decrease by 30-35% by the New Year holidays. This price reduction could be a result of the overall trend in the market. Global prices for butter have fallen by more than 30% since the end of summer, which has also affected the price situation in Ukraine.

Moreover, the price of 'extra' class milk decreased by 17% in mid-November, which may indicate a decrease in demand for dairy products in general. Ukrainian exporters sell butter for a maximum of 4.5 euros per kilogram, indicating the challenges local producers face in competing for the market.

Adaptation of Ukrainian dairies

Thus, Ukrainian dairies are forced to adapt to new conditions dictated by foreign competition, which affects their production and pricing policy.

The situation in the dairy products market in Ukraine indicates the necessity for local producers to find new strategies to maintain competitiveness. The reduction in prices for dairy products could lead to changes in consumer preferences and also impact the profitability of production. Experts note that the industry should focus on innovation and product quality to attract consumers in the face of tough competition from imports.