Cheese Market in March Sees Activity Boost Mainly Due to Promotions – Analysts

The cheese market in Ukraine in March 2023 demonstrated a characteristic seasonal revival in sales; however, this growth was largely made possible by a plethora of promotional campaigns. This information was reported by the industry analytical agency 'Infagro', which provides a detailed analysis of the situation in the dairy products market.

Experts from the agency noted that the supply of both domestic and European products remains excessive. This, in turn, hampers the full recovery of trade, despite market participants' hopes for government support mechanisms that were expected to stimulate growth. 'Despite expectations, cashback mechanisms have not yet provided significant support for the industry. At the same time, large warehouse stocks are practically non-existent: most producers have shifted to working under specific orders, optimizing the use of working capital,' the experts emphasized.

According to analysts, after the winter decline, cheese production has yet to show significant recovery, particularly due to pressure from active imports. The agency forecasts that the results of the first quarter of 2026 may show weaker dynamics than the previous year, when the market situation was also challenging. This indicates that the cheese market is facing serious challenges that require urgent resolution.

Regarding pricing policy, analysts highlight the gap between nominal and real prices. 'Prices for basic types of semi-hard cheeses formally remain stable; however, actual sales often occur with discounts as part of promotional offers. Export prices also demonstrate restrained dynamics: they hardly react to either declines or increases in quotations on the global market,' the agency's report stated.

In anticipation of the Easter holidays, market participants hope for a traditional increase in demand, which could partially offset the current surplus supply. This could serve as a positive signal for producers who are trying to adapt to market conditions and find new sales opportunities. The cheese market in Ukraine, despite all its difficulties, continues to be an important segment of the agro-industrial complex, and its further development depends on the ability of market participants to respond quickly to changes in demand and supply.