Cheese has moved significantly in price for the last number of weeks. Looking at the Dutch dairy trade platform Trigona this week at a cheddar price of €4,200/t in Ireland, allowing for shipping cost, it has made a significant shift up despite lagging behind the wider dairy market for a number of weeks.
EU cheese production increased again in September driven by strong German, French and Polish output.
Retail cheese sales are weaker compared with last year, but are tracking above 2019 levels.
Food service is recovering, with the fast-food sector performing particularly well. Exports are also positive. Thus, despite solid supply, prices firmed, with shipping disruptions and reports of weaker milk flows boosting sentiment.
In the UK cheddar output has been solid, with availability higher when we account for weaker imports and exports.
However, again, prices remain at a high level, supported by solid retail sales and improving food service demand.
Even in the US, strong output, combined with weaker consumption, means stocks continue to rise. Prices firmed following the announcement of a ‘regular’ government buying programme.
The first Irish co-ops to set November milk price have once again raised farmgate milk price by over 1c/litre to reflect the rising dairy commodity market. This is on the back of the most recent GDT auction, which was up another 1.4% last week.
Since mid August the GDT results have been steady or increasing. Cumulatively since mid-August, results are up over 15%.