More than half of the shelves in Ukrainian supermarkets are currently occupied by imported cheese, which poses serious challenges for the development of the domestic dairy industry. According to experts, a price increase of approximately 5% for dairy products is expected in the coming months, although demand remains stable.
This is reported by Finway
Why Imported Cheese is Displacing Ukrainian Products
In previous years, Ukrainian-made products dominated the market, but the situation has significantly changed now. More and more supermarkets are favoring imported cheese, especially from Poland. Polish cheese not only holds a larger share among imported products but is often sold at a lower price than its Ukrainian counterpart. As noted by Olena Zupinas, Deputy Director General of the Milk Producers Association, imports now account for over 50% of the cheese market in the country.
The reasons for this imbalance lie in the substantial development of the Polish processing industry over the past ten years. The European Union has provided financial support to Polish producers, allowing them to modernize their facilities, reduce production costs, and make the prices of finished products competitive even despite higher raw material costs in Poland.
“Unfortunately, our retail chains are not as patriotic as those in Poland. In Poland, access to shelves has effectively been closed to Ukrainian producers, while here, imports are actively promoted,” emphasized Zupinas.
The Impact of Competition on Ukrainian Cheese Makers and Price Forecasts
Due to the dominance of imports, Ukrainian cheese producers are facing a shrinking domestic market and increasing competition. This complicates production expansion and may lead to a reduction in the number of enterprises and jobs in the industry.
However, the situation also has positive aspects. As September approaches, the market for fresh dairy products traditionally revives: demand for milk, yogurts, kefir, and cheese products increases due to people returning to their usual routines after summer vacations and the start of the school year.
According to specialists, a peak in dairy product sales is expected in the fall, but alongside this, a slight price increase of around 5% is possible. This primarily concerns products with complex production technologies, such as yogurts and cheese products. However, there are currently no grounds for a sharp price increase, which allows for expectations of relative stability in the market.
Ukrainian producers, despite the challenges, are actively preparing for the new season, implementing marketing strategies and promotional offers to retain consumer loyalty. This reflects the industry’s desire to maintain its position even in the face of increasing competition from imports.