Cheese export is booming despite the corona crisis

Despite the lockdown, the cheese market has revived recently. A surprising development, given that sales to the catering industry have largely disappeared. Demand from the supermarkets is better than expected and in general the available volumes are fully absorbed by the market. This is also reflected in the DCA quotations. They have been on the rise since the beginning of this year.

European cheese export
The corona crisis is hardly reflected in the export of cheese. European cheese exports developed positively last year, according to figures from the European Commission. In total, about 908.500 tons of cheese were exported last year, an increase of 8% compared to 2019. Japan was the main buyer, followed by the United States and Switzerland. For Switzerland, Europe was by far the main supplier, with a total import of 71.402 tons of cheese, no less than 69.300 tons came from Europe.

Worldwide, Europe remains by far the largest cheese exporter. With total exports totaling 1,36 million tonnes (including the United Kingdom), Europe is well ahead of its main competitors New Zealand and the United States, which exported 327.000 tonnes and 359.000 tonnes respectively.

Dutch cheese market 
When we zoom in on the Dutch cheese market, a similar trend can be observed. In total, the Netherlands had a share of 159.669 tons in total European exports to third countries. This is an increase of 12,5% ​​compared to 2019. The largest part of this, 36.259 tons, went to Japan. The United States was the second most important market, importing 15.454 tons of Dutch cheese, followed by South Korea with 11.033 tons.

Sales within Europe
European cheese is popular outside Europe, but a lot of cheese is also traded within Europe. Eric Coenen, managing director at Geris Dairy Solutions, agrees that a lot of Dutch cheese is also exported within Europe. "We only export within Europe. Of approximately 75.000 tons of cheese, we sell only 10% domestically, the rest of the cheese is exported. The main destinations are Germany, Italy, France, Spain, Croatia and Belgium."

Outlook 2021
The prospects for the cheese market for this year are not gloomy either. Retail demand is good. Lars Versluijs, commercial manager at Interfood, foresees a positive trend in exports in the short term. "At the moment there is a lot of milk available in America and the export flows of European Cheddar to the world market could decrease somewhat as a result. However, we do not see this at the moment. Not all customers are prepared to exchange their European cheese for American cheese. Cheddar. A lot of trade has already been done for the export for March and April and a positive trend can be felt there."

With a view to possible relaxation of the lockdown, the prospects for the cheese market are good. "If the catering industry is allowed to open again, a temporary peak in cheese sales is expected, because restaurants have to replenish stocks again," says Coenen.

The extent of the peak will depend strongly on the spread of easing in Europe. "When and in what capacity there will be an increase in demand from the catering industry, is highly dependent on the European governments. For example, will the catering industry in Europe reopen divided or will all countries relax at the same time. When countries start easing at the same time and the catering industry is reopened, In the short term, the peak will be more significant than if there is a partial easing," said Versluijs.