Ukrainian cheesemakers losing domestic market to imports, unable to increase exports

MOSCOW. April 16 (Interfax) - Sales of Ukrainian cheese have stopped growing in Ukraine amid an increase in imports, and the prospect of selling domestic products on foreign markets is dim, Ukrainian media said, citing the Infoagro industry analytical agency.

"Cheese prices will not go down in the near future, while large discounts will become widespread. Yet even the discounts are unable to save some manufacturers amid a sizable increase in imports," the analysts said.

European cheese is quite cheap, and domestic producers find it increasingly difficult to compete against it on the local market. The imports of hard, semi-hard and white cheese grew 12% in Ukraine in the first quarter of this year. A fair share of imports is hard and semi-hard cheese, which is the greatest competition for domestic cheesemakers. In turn, the imports of processed cheese went up by a quarter.

The experts say, at the same time, they are not sure about further substantial increase in imports, considering that devaluation of the hryvnia somewhat scares off importers.

As sales on the domestic market are faltering, Ukrainian cheesemakers are trying to boost exports, but do not always succeed, the experts said.

"Semi-hard cheese exports dropped 11% in the first quarter of this year, compared to the respective period of last year. The exports of semi-hard cheese have even worse dynamics. The sales of these products dipped by almost 25% in the first quarter. Such exports will shrink even more as time passes," Infoagro said.