The Ukrainian cheese industry is recovering after a difficult period caused by high raw material costs. Thanks to the decrease in prices for raw milk, production has become more profitable, which has allowed domestic cheese factories to compete more actively in the market.

According to the analytical company Infagro, the improvement in the economic situation in the industry has contributed to the growth in production volumes. To stimulate sales, manufacturers are holding large-scale promotional discounts, sometimes reaching 25%. At the same time, basic wholesale prices have remained stable for the time being.

Experts predict that if raw milk prices rise again in the fall, cheese factories will have sufficient financial reserves not to raise the retail cost of products. In this case, instead of raising prices, they will simply reduce the number of promotional offers.

However, there is another factor that affects the formation of retail value - trade margins. Ukrainian supermarkets are in no hurry to reduce margins and often set about 25% mark-ups on cheese products. For comparison, in EU countries these figures are much lower. For example, in Hungary the government has introduced a restriction on trade mark-ups to 10% for 30 basic products, including 10 types of dairy products, including cheese.

Analysts also note that the decrease in imports has become another important factor contributing to the development of the domestic cheese industry. Two key factors — promotional prices for Ukrainian cheeses and the strengthening of the euro — have made imported products less competitive. This allows Ukrainian producers to increase production volumes, although so far the indicators for the first quarter of 2025 remain lower than last year.

In general, the situation on the cheese market remains stable and promising for Ukrainian producers. If the trends continue, domestic companies will strengthen their positions, and buyers will be able to continue to take advantage of advantageous promotional offers.