European cheese glut to hit Australian shelves and export markets

Dairy Australia analysts say the European cheese glut is a threat to Australia’s price competitiveness in key markets such as Japan and China.

A cheese seller, wearing a protective facemask, serves a customer behind a transparent plastic curtain at a covered market in Le Perreux-sur-Marne last month during France’s coronavirus lockdown. (Photo by BERTRAND GUAY / AFP)

A EUROPEAN cheese glut is set to hit Australian producers both on domestic grocery shelves as well as in key export markets.

Both British and French cheesemakers are calling on their fellow citizens to eat more of their home-grown produce to ease the glut, which is likely to have a domino effect on retail markets throughout the western world.

Dairy Australia analyst John Droppert said the European cheese glut was a threat to Australia’s price competitiveness in key markets such as Japan and China.

“In 2015-16, we saw an excess of European produce following the closure of the Russian market and that had an impact on Australia’s prices at the time,” he said.

“Australia is seen as a descent-sized market by European cheese producers, so there’s likely to be an increase in produce (through to Australian retailers). Like 2015-16, prices in key markets like China and Japan will flow through. The exact impact on prices is hard to determine at this stage but it’s certainly a threat at this time.”

In the UK, sales of Stilton — among other famed cheese varieties — have declined by 30 per cent since coronavirus restrictions were implemented in March.

Stilton Cheese Makers Association chairman Robin Skailes said while the famed product was still being made, milk wastage was a concern due to falling demand.

“Like many British food producers, Stilton sales have been affected by the Covid-19 pandemic,” Mr Skailes said.

“We hope that the British public will support us by buying Stilton instead of imported blue cheeses which, in turn, will support British dairy farmers.”

In France, the National Council of Appellations of Dairy Origin president Michel Lacoste said sales had slumped by more than half since the Macron administration implemented its coronavirus lockdown.

He estimated that producers will be left with 5000 tons of overstock at the end of the pandemic.

“(French consumers) have changed their habits and turned to basic necessities,” he told the France 24 television network.

“We farmers, producers, we were not confined. We didn’t stop working. We worked every day. So eat cheese, make a fair trade act to maintain the French culture, the French tradition, the French heritage, that we all share.”