Monday, September 14, 2009

The Global Cheese Market

This post will examine the global cheese markets by country. As a reminder, the U.S. dairy industry milk prices are primarily based on Cheese (April 7 post). Cheese markets are global and influenced by global supply and demand (April 13 post).

Like any market analysis, global consumption by country, imports by country, and export by country will be examined.

If the U.S. is to be a major supplier, a marketing plan must be developed based on where the demand is, what countries have supplies in excess of consumption (exporters), and which countries have supplies that do not meet consumption (importers).

Per capita consumption of cheese varies significantly by country. Using per capita consumption removes the impact of the size of the country to see where the people are that consume cheese. Generally speaking, per capita consumption rises with wealth and acceptance of dairy products in the country culture.

Clearly, the populations of Europe and the U.S. are the major cheese consumers. Some other countries also have well developed cheese consumption patterns. In the Americas, Argentina, Canada, Chili, and Mexico have significant cheese consumption in their diets. In China and India, a significant taste for cheese has not developed.

Who are the big importers that do not have a dairy and cheese business large enough to supply demand or have tastes for imported cheese, or where pricing makes imports more attractive than local production? Below, 2008 cheese import data is shown by country. Russia is a major cheese importer. In the Americas, the U.S. and Mexico are significant importers.

Finally, what countries have developed cheese production that allows them to export significant quantities? The "players" here are Europe, New Zealand, Australia, and the U.S. in that order.

In a traditional sense, if the U.S. dairy industry wants to be a major participant in global cheese markets, the near term targets would be countries that have a taste for cheese (consumption). The near term opportunities would be the countries that need cheese imports to meet their demand, and the competition would be the countries that have the capacity to export significant quantities.

This analysis was done to help create a vision of where the U.S. dairy industry needs to position itself for growth in the near term. Policies and strategies need to be developed to properly position U.S. cheese in the international markets.

What group is coordinating this effort?

1 comment:

  1. Cheese market has been changed in recent years due to the development in global trends.
    Competition in the cheese market is heating up day by day and commodity segment of cheese market has become more volatile and unpredictable.Cheese consumption has been increasing in the USA.Cheese future prices reflecting the market's valuation of cheese at a forward date.very informative report which focused on global cheese market and nice graphical presentation which describe import and export details..I appreciate for this great market study.