Ukraine’s fresh dairy market is growing
The decline in the number of cows in private households is contributing to the more active development of the market for industrially produced fresh dairy products.
According to Infagro, this gives producers an opportunity to gradually increase production volumes, although this is not easy for them.
«Demand is focused mainly on low-margin products, while competition among companies remains high, with each player seeking to strengthen its position in this segment.
Traditionally, producers compete for shelf space in stores through promotions and discounts, but using such tools is becoming increasingly difficult. Despite relatively inexpensive raw materials, overall production costs are rising due to higher costs of packaging, energy, logistics and other components. Under these conditions, some companies are already considering raising base prices,»analysts explain.
They forecast that certain product categories may become more expensive, while prices for high-fat products, including sour cream, cream and high-fat cheeses, will remain relatively stable for some time. This is due to the fact that producers need to find ways to sell surplus milk fat, the production of which has recently increased significantly.
«Overall, the industry is showing a trend toward increased use of milk for the production of fresh dairy products and a gradual rise in output compared with last year,» the experts summarize.
