The segment of fresh dairy products continues to play a key role in sustaining Ukraine’s dairy industry, helping offset losses from commodity dairy production, ProAgro Group reports.

At the same time, competition in the fresh dairy segment is growing faster than demand. Under such conditions, marketing teams are increasingly focused on maintaining shelf presence in retail chains.

Promotional campaigns and discounts remain the most effective tools for supporting sales. Despite market pressures, base prices for most products have remained relatively stable. However, experts suggest that prices for high-fat products — such as sour cream, cream, and fresh cheese — could be reduced even in standard pricing to stimulate demand.

Producers report no significant drop in sales of fresh dairy products, even after the start of the Lent period. There are also no reports of production cuts.

According to preliminary estimates, output of fresh dairy products in February may decline by around 5% compared to January, mainly due to fewer calendar days. Overall, processors are expected to handle 2–3% more milk than in February last year.

Fresh cheese production remains the most dynamic segment. In addition, dairy processors are increasing output of sterilized products in order to better utilize excess raw milk.

Earlier, it was reported that dairy processing profitability in Ukraine typically starts at around 150 tons per day, while in Europe this threshold is significantly higher, at approximately 500 tons per day.

Source: INFAGRO