What is yeast dermatitis? Yeast dermatitis or Malassezia dermatitis is caused by the fungus Malassezia pachydermatis. It is an extremely common cause of skin disease in dogs. This yeast is normally found on the skin, but its abnormal overgrowth can cause dermatitis, or inflammation of the skin.. Apple cider vinegar is a great solution for yeast, especially for dogs who love the water (because yeast loves water and moist, damp skin)…