Cheese is a product that people have known for many millennia. Depending on the production technology, cheeses can be:
- hard;
- soft;
- briny;
- processed (melted).
Despite this variety, it is hard cheese that is among the most popular delicacies. It is made from different types of milk:
- cow’s milk;
- goat’s milk;
- sheep, etc.
Cow’s milk remains the most sought-after raw material for cheese making.
Analysis of the cheese production market in Ukraine
Starting from 2014, large-scale changes began in the dairy industry of Ukraine. They affected cheese production as well. Most of the cheeses in Ukraine are produced in the middle price segment. Most domestic producers lack the technological capacity to produce elite cheeses. The crisis brought with it a decrease in demand for cheese among Ukrainians. This forced producers to refocus on other dairy products. In 2015, 160 thousand tons of cheese were produced in Ukraine. According to Vadym Chagarovsky (Chairman of the Board of Directors of the Union of Dairy Enterprises of Ukraine) at the end of 2016, cheese production will fall to 140-150 thousand tons.
The quality of the produced product also drops. In order to reduce the price, producers replace milk fat with vegetable fat. This worsens the quality and flavor of the cheese. According to GOST, cheese made with the addition of vegetable fats should be called “milk-containing product made with cheese technology” (cheese products”). Not all manufacturers indicate this information on the packaging. This undermines consumer confidence.
In order to stay in the market, Ukrainian cheese makers are starting to enter underutilized niches. For example, in 2016, the first organic cheese factory was opened in Western Ukraine – Stary Poritsk LLC.
Analysis of the Ukrainian cheese market: exports and imports
Until 2014, Ukraine mainly supplied cheese to CIS countries. During this period, Russia was the main buyer of Ukrainian cheese. 80-85% of Ukrainian cheese exports went there. Exports to non-CIS countries were small – up to 1 thousand tons per year. In 2014, supplies of dairy products from Ukraine to Russia were banned by Rospotrebnadzor. Now, instead of Russia, Ukrainian producers export cheese to Belarus, Moldova, and Kazakhstan.
Compared to 2013, cheese exports fell three times: from 59 thousand tons to 19.5 thousand tons. In monetary terms, this means a drop from 362.3 million dollars to 121 million dollars. In 2015, Ukraine exported 10.82 thousand tons of cheese, which is 1.8 times less than in 2014. In monetary terms, cheese supplies decreased 3.4 times (to 35.03 million dollars). In January-October 2016, exports of cheese amounted to 6.38 thousand tons. This is 24% less than in the same period of 2015. In monetary terms, exports decreased by 31% and amounted to $18.85 million.
According to the data of the Fiscal Service of Ukraine for the period 01.01.2016-31.10.2016 the largest volumes of cheese exports were carried out in:
- Kazakhstan – 53.62%;
- Moldova – 27.41%;
- Egypt – 7.50%.
Only 11.47% of Ukrainian cheese was exported to other countries.
Ukraine is actively exporting cheese to Eastern countries. For example, in September 2015, China allowed 18 Ukrainian companies to import dairy products. Cheeses are also exported among various dairy products.
As of January-August 2016, the largest exporters of cheese were.
- Dubnomoloko company. It owns 25% of the share of total Ukrainian cheese exports.
- “Lactalis-Ukraine”. The company’s share in cheese exports is 18%.
- “The Cheese Club.” It accounts for 12% of cheese exports.
- “Milkiland-Ukraine.” Exports 10% of Ukrainian cheese.
- “Bel Shostka Ukraine. The company’s share in foreign supplies is 10%.
- Other companies. Other Ukrainian cheese producers export their products in much smaller volumes. Together they account for 26% of Ukraine’s total cheese exports.
In 2013, Ukraine imported 19.46 thousand tons of cheese. In 2014, cheese imports amounted to 11.75 thousand tons. In monetary terms, it is 67.65 million dollars. In 2015, Ukraine imported 5.38 tons of cheese. This is 2.2 times less than in 2014. In money equivalent, imports decreased to 25.47 million dollars. In January-October 2016, the volume of cheese imports amounted to 5.4 thousand tons. The monetary equivalent of imports amounted to $22.5 million.
In the first ten months of 2016, the largest importers of cheese were:
- Poland – 30.88%;
- Germany – 23.98%;
- France – 14.10%.
31.04% of the cheese was imported from other countries.
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Cheese market research: consumer portrait
On average, Ukrainians consume 3.5-4 kg of hard cheese per year. This is significantly lower than the European figures, where the average consumption of cheese is 20 kg per person per year.
The most popular varieties of cheese among Ukrainian buyers:
- “Russian”;
- “Dutch.”
Rising food prices forced the population to reduce the consumption of hard cheeses. Instead, more people started to buy processed cheese. In addition to the price, consumers are oriented by the popularity of the brand. When choosing between products of the same price category, they will choose a more popular brand. Therefore, it is extremely important for a dairy brand to conduct an advertising campaign.
There is nounanimous opinion among Ukrainian consumers as to whether bulk or packaged cheese is better. Older customers believe that bulk cheese does not get stale on the shelves and it guarantees its freshness. Young people prefer to buy packaged cheese because it can be stored for a long time. Also, packaged cheese can be taken with you as a snack, which appeals to people with active lifestyles.
Cheese market research: largest producers
“TERRA FOOD. The company was founded in 1999. It specializes in dairy, meat products and agriculture.
“TERRA FOOD occupies 16.7% of the Ukrainian cheese market. In packaged cheese its share reaches 18%. The company produces 54000 tons of cheese per year. It produces cheese and cheese products under trademarks:
- “The Golden Reserve;
- “Farm.”
- “Tulchinka.”
- “Wapnyarka.”
- “Sorochinske.”
- { “laureate”.
“Terra Foods produces hard cheese at 3 sites:
- “Tulchinskymaslosloseryzavod”;
- “Kryzhopol cheese factory.”
- “Vapnyarsky Cheese Factory”.
The company exports hard cheese to 27 countries of far and near abroad.
“Almira.” The company has been on the market since 1998. The group of companies includes 7 milk processing plants and 6 trading companies.
It produces brand-name cheeses:
- “Gadjachsir.”
- “Lubas.”
- “Slavic Cheeses;
- “Good Jan.”
“Almira” exports dairy products to USA, Mexico, Japan, Algeria, Syria, Israel, Libya, Poland, etc.
Dubnomoloko PJSC (KOMO TM). The company’s cheese factory is located in Dubno (Rivne region). Per year the company produces over 15 million kilograms hard cheese. What sets them apart from other companies is their special brand positioning. The company emphasizes cheeses made according to its own, exclusive recipes. For example:
- “Grande.”
- “Country.”
- “Tenero.”
- “Pepenero.”
- “Golder,” etc.
The company actively exports its products to neighboring countries.
“Dairy Alliance. The company was founded in 2000 and transformed into a holding company in 2006. The company produces more than 21 thousand tons of cheese per year.
“Dairy Alliance” produces hard cheeses under trademarks:
- “Piryatin.”
- “Slavia.”
In 2016, Dairy Alliance started a trial export of dairy products to Bulgaria. This included cheese of the Slavia and Piryatin brands.
Milkiland. The company was founded in 1994. The company unites Eastern European enterprises of the dairy industry. Produces cheeses under the trademarks:
- “Dobryana.”
- Latter, etc.
Milkiland exports its products to more than 30 countries around the world.
The Cheese Club company was founded in 2003. It is part of the fuel and industrial group “Continium”. The butter and cheese factory is located in Kanev. Hard cheese is the main product of the company.
In April 2016, the European Commission included the company in the list of approved exporters to the EU. “Club Cheese” plans to enter the markets of Poland, Romania and Bulgaria.
Trends in cheese packaging design
- Focus on the essentials. The modern motto is: the simpler the better. An abundance of details on the packaging distracts consumers. The design of cheese packaging should reveal the main features and benefits of the product at a glance.
- Craft materials. Many people associate kraft packaging with homemade products, and therefore identify with fresh and tasty products. That’s why manufacturers actively use kraft in cheese packaging design.
- Natural Motifs. The use of plant motifs and animal images in the design of cheese packaging is not losing popularity. They are designed to emphasize the naturalness of the product.
You can see an example of cheese packaging design in our portfolio.
Read more about dairy product design in our article.
Effective packaging design is able to highlight the product and attract the consumer’s attention. Emphasize your uniqueness together with KOLORO branding agency!
Globino cheese packaging design – branding agency KOLORO
Cheese market in Ukraine: forecast
Due to the fall of the hryvnia exchange rate, Ukraine is expecting an increase in prices for dairy products. Oleg Voloshyn (Chairman of Dubnomoloko) assumes that in 2017, prices for basic cheeses will reach UAH 150-170 per kg.
Analysis of the cheese market in Ukraine shows that the country is expecting overproduction of this product. Cheese is exported in insufficiently large volumes.
Ukraine is able to boost cheese exports if it can increase its presence in the Eastern market. Bohdan Shapoval (chairman of the Food Export Council) believes that the Egyptian market is one of the most promising for Ukrainian cheese makers. Egypt keeps a part of imported cheese and re-exports the rest to other countries. Therefore, entering the Egyptian market may open for Ukrainian producers other African countries: Ethiopia, Somalia, Sudan. The Arab market can compensate Ukrainian cheese makers for up to 50% of the lost Russian market.
Cheese production is affected by strong competition in foreign markets. There are already producers abroad who are familiar to the local population. Therefore, it will be difficult for domestic producers to gain significant positions in the EU market.
An active advertising campaign of Ukrainian cheese products abroad can help promote domestic products. For example, Dubnomoloko (TM KOMO) produces commercials in Kazakhstan to familiarize the population with their products. Thanks to this, sales of the company’s cheese are expected to grow significantly.
Cheese market research: results
- Cheese production, imports and exports in the country have been in steep decline since 2014.
- Ukrainian cheese producers are actively looking for new markets. Eastern countries are promising for exports.
- Most Ukrainian cheese varieties are not successful abroad. To increase exports, Ukrainian cheese makers need to revise their assortment. It is necessary to produce products that are in demand abroad.
- Cheese companies can strengthen the competitiveness of cheese companies with cheese of their own recipes.
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