Ornua are building up stocks of Irish Cheddar cheese in the UK for retail, foodservice and manufacturing as a buffer for any impact Brexit might have on crossborder movements and pricing. More warehousing space has also been taken in Ireland. A spokesman confirmed that as the full implications of Brexit were unclear, Ornua were “managing downsides and preparing for uncertainty” to ensure a consistent and secure supply of product to meet the needs of UK customers. WTO tariffs on Cheddar of up to 42% loom large for UK-Irish trade in the event of a ‘no-deal’ Brexit. Some 90% of Ireland’s 200,000t of cheese a year is exported, half of this to the UK. Ornua’s Pilgrim’s Choice—made from both British and Irish Cheddar—is the no. 2 brand in the UK after Dairy Crest’s Cathedral City, and now the no. 1 Cheddar brand in Sainsbury’s.
The Dutch Dairy Board/ZuivelNL cut two of their official dairy commodity prices this week: butter is down €30 to €4,700/tonne (the sixth consecutive fall) and WMP has been cut by €50 to €2,650/t. SMP (food) was left unchanged at €1,530/t, SMP (feed) was also left unchanged at €1,290/t and whey powder stayed at €730/t.