Cheese competition is growing in Ukrainian domestic market

Expected ban on deliveries of Ukrainian dairy products to Russia occurred. It was the most painful for cheese makers.

Only they delivered large volumes of the products to Russia recent years. Now “yesterday’s” exporters of cheese have to wait for better times. Export to Russia will be renewed, but there is only a question – when. For now some producers will look for alternative sales markets, and some of them will reduce production to level of internal sales.

Now it is still not clear whether it will be possible to export to Kazakhstan and Belarus. It seems that rather not. Mass entering of new sales markets is not expected either. It means there will be next redistributions of domestic market between the main players. Dumping, reduction of production, and even full stop of some plants will take place.

Now, in the end of July, the main operators try to maintain the prices for cheese at former level. Mass discounts take place also.

Export prices now only theoretical. There will probably be attempts to offer cheese somewhere at USD 5500-6000/t. If there are perspective buyers, it may be that exporters can work even at loss, selling cheese at the price of USD 4200-4500 /t.

Certainly, now there are no reasons for rise of prices for cheeses.

Production of cheese was rather big last month, over 10 ths t. More than 7 ths t of cheese products were additionally produced. Top of producers changed, because of Russian restrictions.

Considerable decline will probably not occur in July. Notable reduction is expected in August, it will especially concern cheese products.

Source: infagro.com.ua

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