Cheese consumption slipping in Europe

After years of investment in the booming cheese production sector, German and Dutch dairies in particular are being warned that tougher times lie ahead. The Dutch Rabobank points out in a latest European dairy industry report that cheese consumption in general is slipping back in Europe (-1.1% 2005 – 2010). Certainly, Germany remains one of the major exceptions here with per capita consumption soaring over the five years by 6% to a record 22.8 kg/head in 2010. But Rabobank specialists say average annual growth for European cheese sales from now on will be no more than 0.6%.

They feel that expansion by major cheese makers in the last five years means that the EU market is completely filled, with little room for further expansion. The exceptions that might just persuade banks to support new cheese investments by dairies, according to the Dutch financial experts, might be very innovative products, or cheeses with a secure market outside the EU.