Posted January 12, 2019 14:18:56Aussie cheese has become a global market for the world’s leading cheese exporter, with a global supply chain accounting for about a third of the global market, according to a new report.
The United Nations Economic Commission for Europe’s (ECE) World Dairy Market Report 2017, published on Thursday, noted Australia’s exports of cheese and processed cheese had increased to $17.6 billion in 2020, up 40 per cent year on year.
Australia’s exports are concentrated in Australia’s largest and most expensive regions, with exports to New Zealand, Hong Kong and the United Kingdom all increasing year-on-year, the report said.
Key points:The report said Australia exported $17 billion worth of dairy products to the world in 2020The report also found Australia exported almost two-thirds of its dairy product to Europe in 2020However, the region has a large share of its exports to China and India, the United States and Canada.
The report noted that Australia’s export of cheese was a key source of income for Australian producers, and the report attributed this to the popularity of Australian cheese and its perceived affordability.
“The cheese-growing region of Australia has been a significant source of Australian income for the last decade, generating over $4 billion in sales for Australian dairy producers in 2020,” the report’s authors wrote.
“This success is likely driven by Australia’s high quality and availability of cheese, as well as the availability of large market share for Australian cheese in both the United Sates and New Zealand.”
Australia’s cheese export boom has been driven by high prices for the cheese that is produced, according the report.
“In recent years, Australian cheese has been the most commonly exported product in the world, accounting for more than two-fifths of the world market for Australian cheeses in 2020.”
“However, there has been considerable expansion of the export market in recent years,” it added.
“Global sales of Australian cheesemaking products increased by 44 per cent to $19.3 billion in 2021.”
The report found that Australia is a global leader in the production and processing of dairy.
“More than three-quarters of Australia’s cheese exports in 2020 were exported to the United Nations,” it said.
“While the majority of Australian exports to Europe and the U.K. are destined for New Zealand and Hong Kong, the export of Australian dairy products from Australia to Europe was also significant, accounting in excess of $8.4 billion.”
In 2020, Australia exported about $4.4 trillion worth of cheese products to Europe, accounting to about one-third of all cheese exports.
“For the first time, a significant share of Australian export to the EU is sourced from the U,S.
A,” the ECE said.
The ECE’s report said the number of Australian products exported to Europe increased from 1.7 per cent in 2020 to 2.6 per cent last year.
“Although Australian exports of dairy product in 2020 are growing, their share of total cheese exports is still lower than the U S.A., the U Kingdom and the European Union,” it noted.
“Australia remains one of the most cost-intensive dairy exporters, with only a relatively small proportion of its cheese exports actually going to Europe.”
The ECB report also noted that the growing global demand for dairy products had contributed to a global cheese boom.
“Worldwide demand for milk and cheese products is expected to double by 2030, increasing the total market to $100 billion,” it observed.
“By 2020, global cheese demand will exceed the consumption of all other dairy products.”