The dairy market of Ukraine is considered highly competitive — the number of only large players is about 10-15, not to mention the numerous small local producers, the number of which exceeds several hundred. Today, the consumer places a strong emphasis on healthy food and consequently, there has been a strong tendency to choose natural products. In this regard, a successful brand must ensure the maximum naturalness of the product.
The Ukrainian dairy market demonstrates stable growth. The total production in 2010 was up by 4% with respect to 2009, reaching around 40 million tonnes and bringing Ukraine to the top five leading world producers of milk and milk products.
Milk is one of the most demanded products on the Ukrainian market. The Ukrainian milk supply market is dominated by seven large suppliers who hold a 70% share in total sales (their production capacities make up about 60%). While two of the leading companies also produce pasteurized and sterilized milk, all other producers sell exclusively raw milk. Dairy processing has been continuously increasing its share; it now accounts for around 25% of total sales.
The milk supply market shows a positive trend. The main factors which led to the growth are as follows:
- price increase for raw milk fuelled by high demand from dairy processing companies;
- increase in the commercially exploited cattle herd;
- more available fodder resources;
- increase of output (milk yield per cow);
- rising consumer spending on food products.
The Ukrainian market is dominated by domestic companies producing dairy products, which account for 95% of the total supply. Ukraine has reputable brands, producers of which are well-recognized throughout the world.
