The Ukrainian cheese industry finds itself in a difficult situation due to declining production and increased competition from imported products. One of the main reasons cited is the rise in shipments of cheap cheeses from Europe, particularly Poland, which is putting pressure on domestic producers.
Why Cheese Makers Are Cutting Back on Production
To sustain demand and maintain their market position, producers have been actively offering promotional deals and discounts. At the same time, despite rising costs of dairy raw materials, a sharp increase in cheese prices is not expected this fall. It is expected that companies will reduce the number of marketing promotions and cut back on discounts rather than raise prices, continuing to compete with cheap imported products.
One of the main challenges for the Ukrainian cheese industry remains the rapid increase in cheese imports from Poland. According to Polish statistics, exports of dairy products to Ukraine continue to grow, while Ukrainian exports to Poland, on the contrary, are declining. This trend indicates a deepening imbalance in bilateral trade.
According to preliminary expert estimates, production of semi-hard cheeses in Ukraine fell to its lowest level in recent years in July. This once again confirms that the industry is under serious pressure due to weak domestic demand and increasingly fierce competition from imported products.