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Review of the market of cheese products in Ukraine

Cheese and its derivatives are a highly nutritious and healthy food that is made from curdled milk.In the milk processing sector of Ukraine, cheese production is about 10%. The cheese is produced by 200 enterprises with a production capacity of 200,000 tons of cheese products per year.At the moment, we can note the positive dynamics of consumption of cheeses with additives, the original recipe or form. According to preliminary data, within 2-3 years the share of these sub-categories can reach 5% of total sales. In addition, already today the tendency of a gradual transition from weighted products to prepackaged is visible.In 2016, Ukrainian enterprises reduced cheese production by 20-25%, but increased the production of butter and dried milk. Regions and the transition to goods that are in demand there.We note that the volume of cheese exports from Ukraine in January-February of this year amounted to 874 tons, which is 11.1% more than for the same period in 2016, in monetary terms, cheese exports for the reporting period increased by 28.2% - to 2 , 77 million dollars. Import of cheese to Ukraine for the first two months of this year increased by 25.3% in real terms and by 32.4% in monetary terms - to 1.24 thousand tons and 5.48 million dollars, respectively.Export of milk and cream uncontracted from Ukraine for the reporting period increased by 12.7% in physical terms - up to 1.24 thousand tons, and increased by 35.8% in money terms - up to 805 thousand US dollars. Imports of these products during the reporting period amounted to 86 tons, which is 3.4 times more than in the same period last year. In monetary terms, imports of uncontaminated milk and cream amounted to 152 thousand dollars compared to 52.3 thousand dollars a year earlier.The reorientation of producers to the domestic market also leads to stricter competition on it. In general, the Ukrainian cheese market has already been formed and consolidated: a dozen of the largest plants produce more than 60% of all products.The largest producers of cheese products in Ukraine are the companies Terra Food (15% market share), Almira (12% market share) KOMO (10% market share), respectively. "Milk Alliance" and "Milkiland" increased their market share to 9% in 2016.Ukraine exported almost 5 thousand tons of cheeses for the period from January to August 2016. This exceeds the corresponding indicator of 2015 by 31.55%. According to the State Fiscal Service, in monetary terms, the export of cheese products fell by almost 10%. The total profit was about 14 million US dollars.This trend is due to the decrease in the number of dairy cows by 9% compared to 2015 and the loss of the Russian export market. Experts predict that if Ukrainian cheese manufacturers can strengthen their position in the dairy products market of Egypt and Algeria, they will easily fill almost 50% of export losses. After all, these countries buy dairy products worth more than $ 1.5 million.The CIS countries, in particular Moldova, Uzbekistan, Tajikistan and Kazakhstan are the largest import partners of cheese products. As of September 2016, Moldova exported products worth more than $ 4 million, and Kazakhstan to more than $ 7 million, respectively. In general, the total volume in the total export of cheese products is almost 90%.Summarizing, we want to note the fact that the Ukrainian cheese industry has a huge export potential for expanding the markets for the supply of its products. For positive development, it is necessary to strictly control the standardized quality of products, improve logistics, and modernize farms with appropriate equipment.Cheese and its derivatives are a highly nutritious and healthy food that is made from curdled milk.In the milk processing sector of Ukraine, cheese production is about 10%. The cheese is produced by 200 enterprises with a production capacity of 200,000 tons of cheese products per year.At the moment, we can note the positive dynamics of consumption of cheeses with additives, the original recipe or form. According to preliminary data, within 2-3 years the share of these sub-categories can reach 5% of total sales. In addition, already today the tendency of a gradual transition from weighted products to prepackaged is visible.In 2016, Ukrainian enterprises reduced cheese production by 20-25%, but increased the production of butter and dried milk. Regions and the transition to goods that are in demand there.We note that the volume of cheese exports from Ukraine in January-February of this year amounted to 874 tons, which is 11.1% more than for the same period in 2016, in monetary terms, cheese exports for the reporting period increased by 28.2% - to 2 , 77 million dollars. Import of cheese to Ukraine for the first two months of this year increased by 25.3% in real terms and by 32.4% in monetary terms - to 1.24 thousand tons and 5.48 million dollars, respectively.Export of milk and cream uncontracted from Ukraine for the reporting period increased by 12.7% in physical terms - up to 1.24 thousand tons, and increased by 35.8% in money terms - up to 805 thousand US dollars. Imports of these products during the reporting period amounted to 86 tons, which is 3.4 times more than in the same period last year. In monetary terms, imports of uncontaminated milk and cream amounted to 152 thousand dollars compared to 52.3 thousand dollars a year earlier.The reorientation of producers to the domestic market also leads to stricter competition on it. In general, the Ukrainian cheese market has already been formed and consolidated: a dozen of the largest plants produce more than 60% of all products.The largest producers of cheese products in Ukraine are the companies Terra Food (15% market share), Almira (12% market share) KOMO (10% market share), respectively. "Milk Alliance" and "Milkiland" increased their market share to 9% in 2016.Ukraine exported almost 5 thousand tons of cheeses for the period from January to August 2016. This exceeds the corresponding indicator of 2015 by 31.55%. According to the State Fiscal Service, in monetary terms, the export of cheese products fell by almost 10%. The total profit was about 14 million US dollars.This trend is due to the decrease in the number of dairy cows by 9% compared to 2015 and the loss of the Russian export market. Experts predict that if Ukrainian cheese manufacturers can strengthen their position in the dairy products market of Egypt and Algeria, they will easily fill almost 50% of export losses. After all, these countries buy dairy products worth more than $ 1.5 million.The CIS countries, in particular Moldova, Uzbekistan, Tajikistan and Kazakhstan are the largest import partners of cheese products. As of September 2016, Moldova exported products worth more than $ 4 million, and Kazakhstan to more than $ 7 million, respectively. In general, the total volume in the total export of cheese products is almost 90%.Summarizing, we want to note the fact that the Ukrainian cheese industry has a huge export potential for expanding the markets for the supply of its products. For positive development, it is necessary to strictly control the standardized quality of products, improve logistics, and modernize farms with appropriate equipment.