Since the start of November cheese prices have dropped significantly with the biggest reduction seen in Mozzarella which at the time of writing is back by €900/ton. The other main European cheese products such as Gouda, Emmental and Cheddar are also on the way down though not quiet at the level of the Mozzarella reductions just yet. All the fundamentals are pointing to more reductions over the next few months.
Inflation is biting consumers hard and we are entering into the unknown after the Christmas holiday season. Every January is always the same with consumers battening down the hatches when they receive their credit card bills but this year is definitely different with inflation rampant all over the world since the covid lockdowns and Ukraine war. The high dairy prices in supermarkets have already seen a drop off in retail demand and this is likely to continue into the new year.