Analysis dairy business
Poland is overtaking the Netherlands as a cheese superpower
Cheese prices have been under pressure for more than a month. Sales lacked momentum due to disappointing sales, which is currently being reinforced by the holiday period. In addition, ample cheese production is putting pressure on the market, which is increasingly dominated by Poland, which has quietly passed the Netherlands as...
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The downward trend on the cheese market has now lasted 5 weeks. The DCA quotation for Gouda has fallen to €3.320 per tonne and is therefore close to the long-term average. Edam, cheddar and mozzarella are also in a downward spiral. A lack of demand is cited as the cause by insiders. The expectation is that demand will probably pick up again after the summer holidays. However, whether this can stop the downward trend remains to be seen.
Although cheese stocks are not described as excessive, there is still supply pressure. In May, European cheese production amounted to 847.000 tons, according to Eurostat data. This means that European cheese production in May was barely 3% ahead of last year. This shows that cheese within the bulk provides the best valorisation of milk, as the growth is higher than the European milk increase.
Poland continues to grow strongly
What is striking is that Belgium produces considerably more cheese. In the first five months of this year, production increased by 10%. A similar growth rate emerges in Denmark. Of the major cheese producing countries, Poland is growing strongly with an increase of just under 5%. In the Netherlands, production growth is slightly less than one percent. In 2022, Poland will overtake the Netherlands as the fourth largest cheese producer in Europe and the distance has increased this year. According to insiders, it is noticeable that Poland is playing an increasingly dominant role in the cheese trade, as a lot of volume is exported.