Ukrainian cheese producers face a serious threat of losing a significant part of the domestic market due to the rapid growth of imports

Ukrainian cheese producers face a serious threat of losing a significant part of the domestic market due to the rapid growth of imports. According to the analytical agency INFAGRO, the main reason for this trend is the significant difference in prices between Ukrainian and European cheeses, which makes imported products much more affordable for consumers.

Analysts note that only two factors can stabilize the situation: a decrease in prices for products by Ukrainian producers or a sharp devaluation of the hryvnia. However, a decrease in prices is unlikely, since the cost of production remains high. Domestic cheeses already cost more than 300 hryvnias per kilogram, and producers do not plan to reduce the price. At the same time, the risk of devaluation of the hryvnia due to the war and economic instability looks quite real.

Of particular concern are the December statistics: imports of rennet cheeses (hard, semi-hard and white) increased by 50% compared to the same period in 2023, reaching 4.6 thousand tons. If this trend continues, European cheeses may occupy half of the entire Ukrainian market, which will create a serious challenge for local producers.

“In 2021, imports were also significant, but then the situation was balanced by a large number of consumers. Now, many Ukrainians are abroad or in temporarily occupied regions, which reduces domestic demand,” experts comment. Producers are trying to expand exports, but they face significant obstacles: the high cost of logistics to post-Soviet countries and the inability to compete on price with European products in other markets.

Despite the difficulties, in 2024, Ukrainian cheesemakers managed to increase exports of semi-hard cheeses by 9%, to almost 7 thousand tons. However, exports of processed cheeses, including cheese products, decreased by 4%, amounting to 4.2 thousand tons. This demonstrates that even in conditions of economic instability, producers are looking for opportunities to enter foreign markets, although they face numerous restrictions.

According to experts, Ukrainian producers need to immediately reconsider their strategies in order to maintain their positions in the domestic market. Investments in reducing costs, improving product quality and finding new sales channels can be the key to successful competition with European cheeses, which are increasingly winning over Ukrainian consumers.