Dairy Market Report Q1 2020

We hope all of our customers had an enjoyable end to 2019 and are now refreshed for another year as we enter a new decade. The decade of the ‘10’s’ was an enjoyable if challenging one for Ingredient Solutions as I’m sure it was for you. We are excited at the opportunities presented to us for what hopefully will be another decade of strong growth. There is no doubt the world has undergone some remarkable transformations over the last decade in this new digital age. Despite the drastic changes you can be certain that Ingredient Solutions will rise to any challenge placed upon us! The food industry in general is also undergoing some groundbreaking changes so the next ten years will no doubt prove to be intriguing.

In this issue of the dairy market report:

 
A Changing Dairy Market in Oceania
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Trade dispute between USA and EU
READ MORE
Controversy for French Dairy Industry
READ MORE
Halloumi
Halloumi Cheese Shortages
READ MORE
 

We hope all of our customers enjoyed a successful 2019 and are ready to enjoy another successful decade. We as a company have grown significantly in the last ten years. We fully realise the need to keep our offering dynamic to keep pace with your goals too. The food industry is always changing and the last few years have been especially transformative with the emergence of social media changing the market landscape.

Ingredient Solutions have introduced many new products including vegan, low fat and reduced sodium cheese and we would appreciate any opportunity to present our expanded range. We appreciate the fact that trends and customer requests are always changing and we make sure to be always reactive to our customers’ requirements. We hope our service has been a help to our customers over the last year and we look forward to fulfilling your needs again in 2020. The year ahead is full of promise and opportunity and we wish everyone the best of luck yet again.

Yours Sincerely

Ian Galletly

Changing Dairy Market in Australia and New Zealand

newzealand australiaAll was still relatively quiet in the dairy industry at the end of 2019 and this period of stability was the longest we have enjoyed in some time. However there is a slight whiff of suspense in the air for at the start of 2020 as the recent Fonterra GDT auction on January 8th saw prices jump up by 2.8%. This isn’t a massive increase but it is the first sign of the market changing and there are reports of stock supplies tightening up across the global market including Europe.

We also have to factor in the devastating impact of the wildfire outbreak to the Australian dairy industry. The fires affected the key dairy regions of Australia and thousands of hectares of land have been destroyed. This could lead to an impact on the Oceania supply and this will be accounted for in future Fonterra GDT auctions in New Zealand.

Trade dispute between USA and EU

usa eu tarrifsIn the last report we discussed the looming threat of US tariffs on EU dairy products because of the row over Airbus subsidies. The dispute has escalated since then and we now have the threat of an all-out trade war which could significantly affect market prices.

 

The tariff of 25% on EU dairy products imported into the US was implemented in October. This seems to be a protectionist measure taken by the US government to protect Airbus’ main competitor Boeing and also help American dairy manufacturers who are losing significant market share against European companies. France have also proposed a 3% digital services tax on large tech companies who have offices in France and have at least €750m revenue worldwide. The US government are not happy as this is perceived to be a tax aimed at large American multinationals such as Google, Apple, Facebook and Amazon and they have launched an investigation into the tax.

As a retaliatory measure the US are now threatening to double tariffs on all French imports so there is a threat to French dairy exports of a whopping 50% tariff! As we have seen in similar disputes with China the US are not afraid to use their economic might to impose tariffs on imports to leverage their position in trade arguments. The EU is standing firmly behind France in the dispute with EU trade commissioner Phil Hogan stating that ‘Digital taxation is not a French issue. It’s a European issue’. The tariffs on EU dairy products have already caused pain to EU exporters with popular Irish brands such as Kerrygold and Dubliner bearing the brunt of the costs. It looks like neither side wants to give any ground in the US-France dispute and if the EU is now weighing in it could lead to more trouble ahead with a volatile US government. The US is an extremely important market that is growing for EU manufacturers so if they have to incur any further costs we could see a ripple effect on general dairy prices. Unfortunately relations between France and the US seem to have deteriorated drastically since the French gifted New York with the Statue of Liberty!

Controversy for French Dairy Industry

french cheeseIt hasn’t been the best few months for the French dairy industry as a British Cheddar and American Blue Cheese took the top awards at the World Cheese Awards in Bergamo, Italy. A panel of 260 expert cheese tasters judged the American Rogue River Blue as the world’s best cheese and Somerset’s Pitchfork Cheddar came in fourth place. There was only room for one French cheese in the top fifteen which was Epoisses, a soft cheese produced in Burgundy. This caused consternation in the French media with top national newspaper Ouest-France exclaiming that the results were ‘Sacrilege: only one of the 15 top rated cheeses is French’.

 
Marc Veyrat

Cheddar caused even more controversy in France when the Michelin Guide stripped French celebrity chef Marc Veyrat of a much cherished star rating for committing the ultimate sin of using Cheddar while making a soufflé! Veyrat reacted angrily to the judgment and took legal action against Michelin as he strenuously denies using Cheddar as he claims to only use local French cheese. Whoever would have thought Cheddar could be so controversial? If you fancy some controversy Ingredient Solutions can offer you a range of top grade Cheddar that is fit to be served in any French Michelin Star restaurant.

Halloumi Cheese Supply Shortages

HalloumiThe ever growing popularity of Halloumi has caused a severe shortage of stocks across the global market. Buyers have been scrambling everywhere to get their hands on the beloved squeaky barbecue cheese favourite. Halloumi is a symbol of Cyprus and has an EU granted PDO which gives the country exclusivity in supplying the world’s taste for its main cheese export.

However for a country with less than 1 million inhabitants the task of supplying the world’s demand is becoming trickier as large multinationals such as Burger King and Nandos have added the iconic cheese to their menu. Demand seems to be insatiable and the UK is the number one importer of Halloumi with nearly 11,000 tons purchased in 2019. The UK accounts for 46% of the global demand and sales enjoyed a 10% increase over the last year. However Cypriot manufacturers have been unable to fulfil the ever increasing demands and supply has been extremely limited recently.

The future sustainability of Cyprus being the sole supplier for the cheese is now under question as significant investment in manufacturing will have to happen. Many alternative Halloumi style manufacturers in other countries such as Greece, Hungary, Poland may be about to see a dramatic increase of menacing British barbecue enthusiasts waiting impatiently outside their factory gates to fulfil their never ending appetite!

Smile! Cheese is Good for your Teeth

A cheeseboard after a meal is a delicious way to finish a meal and it is also very good for your teeth. It is a great alternative to sugary snacks and carbs and cheese also acts preventatively against cavities. 

So why is cheese so great for your teeth? Not only does it have high levels of phosphate and calcium, which naturally strengthen teeth and bones, but it also helps balance the pH level in your mouth, which means less harmful acid, more cleansing saliva and fewer cavities.

Cheese is a saliva maker. The alkaline nature of saliva counteracts the acids formed in plaque. The rate of sugar clearance is also increased due to the diluting action of cheese-stimulated saliva.

The calcium in cheese, and the calcium and phosphates in milk and other dairy products, help put back minerals your teeth might have lost due to other foods and they also help rebuild tooth enamel.

A 2013 Study concluded “It looks like dairy does the mouth good, not only are dairy products a healthy alternative to carb- or sugar-filled snacks, they also may be considered as a preventive measure against cavities.”2.

Read more:

US National Library of Medicine National Institutes of Health: The effect of cheese on dental caries: a review of the literature

2. Science Daily: Cheese may prevent cavities


Ingredient Solutions Ltd supply a wide range of cheeses to the food industry. We are well known for our superb range of cheddar cheeses. Our Yellow Road cheese is the leading food service brand in Ireland and we are now able to supply dairy free solutions for cheese loving vegans.

Get in touch with our team to order cheese ingredients for your food business.

Blue Cheese may be beneficial for mental health

blue cheese and mental healthResearchers at Kobe University in Japan have discovered that that LH dipeptide, a constituent of blue cheese and also a constituent of the fermented Japanese soy product “natto”, may be beneficial for mental health. It is likely that there’ll be significant developments on this story over the course of 2020.

It is well established that microglia, immune cells in the central nervous system, remove waste products from our brains but may contribute to the development of depression as this process can result in inflammation in the brain. The new studies suggest that LH dipeptide can reduce that inflammation and thus reduce / prevent depression or inflammatory-related mood disorders.

So far the studies have been carried out on mice, however further studies on humans are planned. The researchers propose that it suggests that eating blue cheese may be a safe preventative measure to combat depression.

Read more:
https://www.sciencedaily.com/releases/2019/09/190913092145.htm
https://www.mdpi.com/2072-6643/11/9/2161/htm

Christmas at Ingredient Solutions

2019 has been an eventful year at Ingredient Solutions Ltd and it was great to celebrate it at our Christmas party. We are looking forward to further success in 2020. We wish you all a very merry Christmas and a happy and prosperous new year.

We welcomed Stiana O’Donoghue to the team in January as he took the role of chief operations officer. He’s settled well into the team and has brought new ideas and a fresh approach to our Boherbue facility. Delighted to have him on board.

Our long-time colleague Gary Davies completed his first year in his new position as Director of Sales. He’s had an interesting year developing new links and meeting a swathe of new customers from all over the world. Gary and the sales team are always at hand to help with your businesses cheese requirements.

In 2019 we launched a new range of vegan cheese alternatives. Ingredient Solutions Vegan cheese alternatives have shown themselves to be very popular amongst existing and new customers. Get in touch with the sales team for more information.

And now – what you’ve been wanting to see – here are some photos from our recent, very enjoyable, Christmas party in Kerry.

 

 

How to Cure a Hangover – Cheese Solutions

hangover curesWith Christmas fast approaching and a General Election in the UK to celebrate or commiserate as well, the risk of hangovers is increasing so you’ll be delighted to learn that new research has pointed to a natural effective cure.

Cheese has long been accredited as a great stomach soother [1] because it’s packed with great things – calcium, enzymes and protein and can coat your poorly stomach with it’s goodness.

Eating some cheese before you venture out can help line your stomach and prevent a really bad hangover even happening [2]. The protein, fat and complex carbohydrates in cheese can prevent the alcohol being absorbed too quickly. Having cheese with your wine not only tastes good – it helps you to deal with the alcohol.

The Ultimate Hangover Cure is Revealed

New research at the Institute of Chemical Technology in Mumbai [3] has revealed the ultimate natural hangover cure. The in depth study looked at how hangover may be alleviated by altering the rate of alcohol metabolism and facilitating the elimination of acetaldehyde by affecting the activity of alcohol dehydrogenase (ADH) and/or aldehyde dehydrogenase (ALDH) enzymes. In the study, food commodities like fruits, vegetables, cereals, pulses, dairy products, spices and other miscellaneous products (ascorbic acid, cocoa, tea, coffee, egg yolk and date samples) were investigated for their effect on the in vitro activities of the enzymes and their antioxidant properties.

An anti-hangover (AHO) product was developed by the researchers. It’s a smoothie made with lime, pear, and coconut water that should be consumed with a side portion of cheese, cucumber and tomatoes to further alleviate the hangover symptoms. To work perfectly, the smoothie needs to be at least 65% pear juice, a quarter lime juice and 10% coconut water.

The cheese, cucumber and tomatoes along with the pear, lime and coconut drink help break down acetaldehyde by boosting dehydrogenase and aldehyde dehydrogenase in the liver. Until the acetaldehyde is broken down you will continue to feel bad – with headaches, nausea, drowsiness etc.

They recommend that coffee is avoided altogether – so reaching for that strong coffee is a bad idea as it can lead to acetaldehyde build-up resulting in an even longer hangover.

Read More:

[1] Cheese is your Hangover’s best friend – Vice
[2] How to Cure a Hangover – BBC Good Food
[3] Influence of food commodities on hangover based on alcohol dehydrogenase and aldehyde dehydrogenase activities – Science Direct

 


Ingredient Solutions Ltd supply a wide range of speciality cheeses including Edam, Gouda, Emmental, Parmesan, Gorgonzola, Provolone, Processed cheeses, Cream Cheese, Mascarpone, Cottage Cheese, Fresh Mozzarella Pearls and Ricotta, as well as classic Cheddar and Mozzarella to the food industry. We work in partnership with cheese suppliers, food manufacturers and food service suppliers to deliver winning solutions. Get in touch with our team to order cheese ingredients for your food business.

Viral Trends: Could “Cheese Tea” be the next big thing in Europe?

Cheese Tea, or naigai cha, has taken Asia by storm and we wonder could it become the next big thing in European cafés? It was developed by street vendors in Taiwan in around 2010 and has spread across the region and is very popular in China. It has made inroads in the USA and in Europe, although it’s not quite reached the same momentum yet.

The increasingly popular cheese tea has variants made with salty or sweet cream cheese and also versions made with cheddar cheese. Tea masters recommend drinking the beverage straight from the edge of the cup at a 40 ° angle and not blending the layers. Straws are not generally used with this drink.

The base of the drink is normally a cold regular green or black tea or matcha tea and the cheesy topping floats on the surface. Sometimes other flavours are added such as fruits and spices, even chocolate and coffee are used. As a drink it is meant to be more like a milkshake, not like the hot milky tea we traditionally drink here in Ireland. Cheese tea has been trending in coffee shops in Asia and increasingly in the US and Europe. It’s also been trending on instagram with over 89,000 posts with the hashtag #cheesetea.

It might sound strange to many to add cheese to drinks, but cheese has also been part of Scandinavian beverages traditionally. Kaffeost is coffee poured over cubes of cheese, the coffee cheese is made from milk and rennet which is heated, allowed to solidify to curd and then baked in the oven. It is reminiscent of cheesecake.

These are some more of the #cheesetea images from Instagram. Do they inspire you to offer Cheese Tea to your customers?

Read more:

Atlas Obscura
https://sv.wikipedia.org/wiki/Kaffeost
Cup and Leaf Blog
The Guardian


Ingredient Solutions Ltd supply a wide range cheeses to the food industry. Our Yellow Road cheese is the leading food service brand in Ireland and we export cheese all over the world to over 30 countries.

Get in touch with our team to order cheese ingredients for your food business.

Bord Bia Consumer Insight Report – Cheddar Cheese

consumer research cheddarBord Bia, the Irish Food Board, conducted conducted extensive consumer research in cheddar cheese buying habits. This is a summary of the findings.

The research found that 45% of participants expressed that they “couldn’t live without cheese”. Almost three quarters of respondents (72%) consumed Cheddar Cheese on a weekly+ basis with 14% of those daily users. 85% of respondents stated that cheese was healthy and nutritious with 84% also recognising that cheese is a natural product which is high in protein.

 

Families found it particularly useful in their household because of its versatility (96%), likeability (89%) and children will eat it (87%) and they enjoy the taste of cheddar (94%). By far the most popular use for cheddar is in a cheese toastie (52%).

Value for money is important to consumers and cheese showed itself to be with 85% seeing it as a relatively low cost food. It was noted though that 53% of respondents always look for best price and switch brands based on offers. Consumer demand for low prices have put pressure on brands to offer promotions. Through 2017 and early 2018, all sales growth in the cheddar category came from promotion sales – multibuys and temporary price reductions. Nearly half of shoppers opted for “own brand” cheddar. 70% of respondents are not loyal to a brand and 4 in 10 don’t see any difference between brands.

There was a split between those who feel cheese is healthy (68%) and those who are concerned about the impact cheddar has on their health (22%) with younger respondents being more concerned than older respondents.The Insight report points to the need to communicate the positive health benefits to younger consumers; E.g. Cheese is low in sugar, high in protein, high in calcium, cheddar is sustaining (slow release energy), potentially good for gut health and delivers specific vitamins.

The format in which cheddar cheese is regularly purchased was as follows 8 in 10 buy blocks, with just over 2 in 5 (42%) opting for grated, and 41% buying sliced. Regular cheddar is the most preferred. Some 3 in 5 claim to be consuming cheddar themselves, with just over 4 in 10 (41%) claiming all members of their household consume.In households with children there is a greater prevalence of grated, sliced and kids cheese snacks being purchased. There was an even split between the preferred colours of cheddar, but the overall preference amongst buyers is for mature/extra mature strength cheddar cheese. Younger consumers (18-24) are more likely to prefer regular strength cheddar.

the cheese compassThe insight report points at ways businesses could increase sales of alternative cheeses to try to move consumers away from the €2 offering.

The Insight Report recommends the use of a cheese compass to better target offerings at specific consumers. Suggestions such as ensuring kids cheese snacks are not positioned next to unhealthy food choices, more persuasive shelf standouts for flavoured options, in general it found cheddar merchandising to be unimaginative and generally health focused. The report perceives potential in more adding more interesting flavours (e.g. Irish seaweed or wild Irish garlic), giving more focus to the story, and also in extending the use through recipe promotions, couplings and snacks. Promoting health benefits, snack opportunities and an environmental focus, e.g. green packaging solutions, are other routes to engage younger buyers.

Tastings offer a useful merchandising opportunity, the report notes that “68% of people in the UK say that they are more likely to buy a cheese that they have been able to sample” (Mintel, 2017)

Click here to see the original Bord Bia report

 


Ingredient Solutions Ltd supply a wide range of cheeses to the food industry. We are well known for our superb range of cheddar cheeses. Our Yellow Road cheese is the leading food service brand in Ireland and we are now able to supply dairy free solutions for cheese loving vegans.

Get in touch with our team to order cheese ingredients for your food business.

Dairy Market Update Q4 2019

Hello everyone and welcome to our latest update on the dairy industry. We hope all of our customers enjoyed a prosperous summer and everyone is rejuvenated after the holiday season! Activity has been relatively quiet regarding dairy pricing throughout the summer months with butter the only commodity to show major movement. Apart from that, cheese prices have been relatively stable which I hope is a positive for our customers who don’t have to deal with the turbulence of previous years.

 
dairy products
Dairy Market Prices
READ MORE
Potential US tariffs on European dairy
Potential US tariffs on European dairy
READ MORE
US tariffs: impact on Ireland
READ MORE
Trouble for Fonterra in NZ
READ MORE
Irish dairy sectory
Irish dairy sector’s contribution to the rural economy
READ MORE
 

The summer flush period has ended and we now look ahead to Q4. We have enjoyed one of the longest periods of stability in the dairy industry for some time and we hope the calm continues for a little longer. We appreciate the challenges a volatile market presents to our customers as many have agreed long term pricing with retail clients. The sustained period of price rises over the last few years was very difficult to comprehend but the tide has turned in recent times so hopefully this has offered our customers a secure footing. The next few months are difficult to predict due to the political uncertainty in the ongoing negotiations between the world’s second largest dairy importer the UK and EU. However, due to the high stakes, we hope sense will prevail and a favourable agreement is reached for both sides. If this occurs we should be looking at another period of stability due to healthy milk volumes and positive market conditions. In the event of the many scenarios that can happen you can rely on Ingredient Solutions to maintain consistency of supply due to the long standing relationships we have built with our suppliers. We hope we are continuing to live up to the high standard of service expected of us and wish you a successful Q4 as we look ahead to the looming festive season!

Yours Sincerely
Ian Galletly
Managing Director

Tel: +353 29 76981 Fax: +353 29 76984

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