Poland is stepping up pressure on the Ukrainian dairy market: prices could rise by 5–10%
Prices for dairy products in Ukraine may rise by the end of the summer. According to estimates by the Association of Milk Producers, the price increase will be about 5–10% due to rising production costs.
According to Olena Zhupinas, the association’s deputy director general, the cost of production is most significantly affected by rising prices for energy, packaging, and fuel, as well as currency exchange rate fluctuations.
She noted that the dairy industry is also experiencing a crisis of overproduction of exchange-traded dairy products. As a result, purchase prices for raw milk have fallen below the cost of production, and many farmers are operating at a loss.
At the same time, a sharp rise in butter prices is not expected; however, the large promotional discounts previously offered by retail chains may disappear.
The association identified the increase in cheese imports, primarily from Poland, as a separate issue. Thanks to government support and modern production facilities, Polish producers have lower production costs, which allows them to compete successfully in the Ukrainian market. Currently, according to the association, imported cheeses account for about half of the shelf space in stores.
Source: Association of Milk Producers.
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