Ukraine: Exporting cheese has become more profitable than domestic sales

On the domestic market the demand for cheese continues to weaken, but cheese makers are trying to maintain production volumes high.  INFAGRO

The decrease in demand occurs due to seasonality than the price factor, because now in almost all trade chains consumers can choose among the cheeses of either domestic or European production with a price discount of 20-25%.

So, the earnings of cheesemakers are now far from what they were at the beginning of spring.  Exports, at least to some countries, are more profitable than sales in the domestic market, which has not been the case for a long time.  Considering the profitability of foreign trade, cheesemakers are trying to increase export sales.

The marketing policy of massive price discounts protected domestic cheesemakers from increased competition with European cheeses.  The discounts were a very correct decision, whether it was conscious or not.  Imports have stopped increasing.  In May, there was even a decrease in cheese imports purchases, but it is not worth counting on a further significant reduction.


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