Ukrainian cheese producers are facing difficulties in competing with their Polish counterparts due to the higher cost of raw materials and the lack of government subsidies provided to the European agro-industrial complex (AIC). This was stated by Serhiy Vovchenko, Chairman of the Supervisory Board of Milk Alliance Holding, in an interview with Delo.ua.

According to him, the cost of raw milk has increased significantly in Ukraine, which has significantly affected the competitiveness of dairy processing enterprises. "We are now witnessing an unstable balance, when the cost of raw materials for cheese production is UAH 12-15 per liter excluding VAT, which is a high price for both export and domestic markets.

Milk Alliance estimates the cost of cheese at 10% of the cost price. To facilitate sales, the holding offers discounts to retailers, so the average price of Ukrainian cheese is about UAH 300 per kilogram, while Polish cheese is available for UAH 250 per kilogram, which is 20% cheaper.

At the same time, it is easier for Ukrainian businesses to compete in the fermented milk and whole milk products segment due to the short shelf life, which is why European importers simply do not have time to deliver the goods with the required shelf life.

Serhiy Vovchenko also noted that in the European Union, 30% of the total budget is allocated to support the agricultural sector, while in Ukraine, livestock and milk processing do not receive government subsidies. This makes it important to support not only the processing industry but also milk production.

If milk production in Ukraine increases, cheese prices could fall, making it more affordable for the end consumer.