Ukrainian dairy processing enterprises are increasing the production of fresh dairy products, even if it requires offering significant discounts to sell them.
This was reported by ‘Infagro.’
According to market participants, factories are trying in this way to retain their raw material supply zones and reduce the production of unprofitable exchange-traded products.
‘The biggest discounts are currently offered on high-fat products — sour cream and cream. Despite the seasonal increase in demand for such goods, producers deliberately reduce the amount of fat used for butter production, as its manufacture remains economically unviable,’ the experts add.
Processors do not plan to revise the base prices for main whole-milk products for now and, at the very least, will not raise them until the end of the year, they believe.
Due to increased competition in the domestic market, leading operators have intensified the export of fresh dairy products. In October, export volumes were one-third higher than last year.
‘The main market remains Moldova (77%), but shipments to alternative destinations are also increasing: exports to the Balkans have resumed, fermented cheeses are being supplied more actively to the UAE, and the geographic reach of glazed curd bars is expanding,’ the specialists add.
At the same time, imports of fresh dairy products in October declined compared to September but remained higher than last year. Poland continues to be the main supplier. Given the surplus of raw materials, it is expected that by the end of the year, supplies of Polish products to the Ukrainian market may increase
