Cheese prices have remained firm so far in Q1 despite the wide-scale lockdown of Europe due to the third wave of covid. Retail sales have remained strong despite the natural drop off of foodservice demand. The firm positioning of prices can also be attributed to lower than usual milk supplies across Europe which is keeping a robust balance between demand and supply.
We haven’t seen prices take the same plunge as the level seen in Q2 2020 when the market plummeted with the onset of the first lockdown. Even though societies and businesses across Europe continue to be restricted the dairy industry has come through so far in relatively good health compared to other less fortunate sectors. That is not to say there haven’t been any casualties but the mood is buoyant among many traders who anticipate a very strong market later in the year when the majority of the population are vaccinated and we finally see the reopening of the economy.