Global Cheese Trade Dynamics – Investing in Cheese Is Still a Good Bet
Investing in cheese manufacturing remains a good opportunity, according to the most recent RaboResearch dairy report “Global Cheese Trade Dynamics: Investing in Cheese Is Still a Good Bet”.
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“Driven by export market expansion, Rabobank forecasts increased cheese demand over the medium term, between 2019 and 2024,” says Michael Harvey, Senior Analyst – Dairy. “Alongside growth, the market is undergoing a significant period of change.” At the core of this change are sizeable swings in trade balances in key exporting regions, a strong pipeline of long-term investments in cheese capacity to absorb growing milk pools, and an active cycle of M&A.
A conservative approach to greenfield investment in cheese capacity is also warranted over the medium-term. There are also considerable risks to playing in this market. Prominent among these risks are elevated geopolitical and macroeconomic uncertainty, resulting in trade disruption, and currency fluctuations that ultimately contribute to a more volatile trade environment.
With the right corporate strategies, these can be managed, but some caution is warranted. Key factors for success will include staying agile, access to offshore markets, industry support, scale, and a culture of innovation.
Where to go from here
Michael HarveySenior Analyst - Dairy Read more