Sales of Cheese in Ukraine Decline Due to Competition from Imports and Rising Stocks
In the second half of October, the situation in the cheese market in Ukraine remains tense: demand for products from domestic producers is decreasing, while warehouses are overflowing.
This is reported by AgroReview
Impact of Imports and Price Competition
Ukrainian cheese producers are facing increasingly strong competition from European manufacturers. Cheese imports from EU countries are entering Ukraine at significantly lower prices, forcing local factories to either lower their own product prices or more actively use promotional offers to support sales.
Despite this, most enterprises are reluctant to reduce production volumes, as they do not want to lose their raw material base. As a result, stocks of finished cheese in warehouses continue to grow.
Marketing Strategies and Export Challenges
Companies with developed marketing strategies maintain profitability by conducting promotions and selling part of their products at discounts. However, even such measures do not guarantee an increase in demand, as the base price of Ukrainian cheese remains higher than its European counterparts. Currently, no further price increases are planned.
“Imported cheese from EU countries is entering the Ukrainian market at significantly lower prices, forcing local producers to reduce prices or increase the share of promotional sales. Further growth in import volumes is expected, which will create additional pressure on domestic cheesemakers. It is forecasted that in November-December, as much semi-hard cheese will be imported into Ukraine as is produced by Ukrainian factories.”
The situation is further complicated in external markets: the decline in cheese prices in Europe is forcing importers to demand more favorable conditions, while new export contracts are being concluded on less favorable terms for Ukrainian producers. Competition in the market is expected to remain fierce in the coming months, and import volumes will continue to rise.