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Production of cheese products will continue to decline

 

Ukrainian cheese makers begin this summer season not in their best mood. The competition in the domestic market is intensifying: traditional manufacturers of cheese products are trying to enter the market with real cheeses and supply of imported cheese is also growing.

Under these conditions, it is necessary to stimulate sales with lower prices. The cheesemakers are not used to this, because in the period 2014−2018 they were only raising them.

Over the spring, cheese wholesale prices dropped by about 7% and now cheese makers sell traditional types of cheese to distributors at 138−150 UAH/kg. And of course, all of them use sales actions.

Cheesemakers long to recall the times when they could export cheese products in unlimited quantities and at decent prices. Now the process of cheese product exports has resumed only in Kazakhstan, but that market is limited and since there are many sellers, the export price for the cheese products has dropped to 2150−2250 USD/t. Many producers are not inspired by such prices, so production of cheese products continues to decline. According to Infagro estimates, last month only 3.3 thousand tons were produced (according to official reports of cheese making enterprises only about 2.5 thousand tons), which is several times less than in April last year.

In April, in comparison to March, production volume of real rennet cheeses decreased by 5 percent, to about 6.4 thousand tons.

In the near future, production of cheese products will still be shrinking. In summer also less cheese will be produced as in summer sales traditionally fall.

INFAGRO

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