The future of the UK cheese market is at risk due to retailers’ neglect and lack of care, warns a report by independent consultancy Kite Consulting.
The report highlights the challenges faced by cheesemakers, including lower raw milk prices, reduced demand for branded products, costly storage, and high interest rates. If these pressures persist, many small and medium-sized cheese specialists may be forced to focus on exports or exit the industry, leading to a loss of quality suppliers and limited choices for consumers.
Moreover, UK cheesemakers are increasingly turning to exports for higher profits, with some already exporting a significant portion of their production. Market consolidation and closures among smaller players are also likely if the current pressures continue.
These circumstances could hinder sustainability efforts in the industry, as processors would prioritize core business areas in times of uncertainty. The report cautions retailers against squeezing UK cheesemakers to the point of limited profitability, as it would result in fewer suppliers and reduced overall milk production. To ensure a robust cheese value chain and meet the demand for British products, UK retailers need to support a viable UK-based cheese industry.
In terms of statistics, cheese volumes have seen a 2.6% decline year on year, although branded cheddar has experienced 8% growth in the latest 12-week period due to promotional activities. While cheese exports have remained stagnant in recent months, there is potential for growth as many cheesemakers strive to better serve the export market.
