cheese industry overview - eu, russia, georgia, armenia and arab countries
DESCRIPTION
Cheese Industry Overview - EU, Russia, Georgia, Armenia, and Arab Countries. Market Overview,TRANSCRIPT
Armenian Development
Agency
Cheese market research for Armenian, Russian, Georgian, European and Arab markets
Cheese is milk's leap towards immortality. Cliff Fadiman
2 | Page
TABLE OF CONTENTS LIST OF TABLES AND FIGURES ....................................................................................................... 5
Definition of Cheese ...................................................................................................................... 8
Major Classes of Cheese ................................................................................................................ 8
Etymology ...................................................................................................................................... 8
Harmonized System Codes (HS Code) for Cheese......................................................................... 9
Fast Facts about Cheese ................................................................................................................ 9
WORLD CHEESE MARKET OVERVIEW .......................................................................................... 10
EXECUTIVE SUMMARY ............................................................................................................ 10
MARKET OVERVIEW ................................................................................................................ 10
CONCLUSION ........................................................................................................................... 17
REFERENCES ............................................................................................................................ 18
ARMENIAN CHEESE MARKET BRIEF OVERVIEW .......................................................................... 19
BRIEF OVERVIEW ..................................................................................................................... 19
MARKET DATA ......................................................................................................................... 19
FOREIGN TRADE ...................................................................................................................... 20
REFERENCES ............................................................................................................................ 23
RUSSIAN CHEESE MARKET OVERVIEW ........................................................................................ 23
EXECUTIVE SUMMARY ............................................................................................................ 23
DOMESTIC PRODUCTION VOLUMES ....................................................................................... 23
KEY MARKET TRENDS .............................................................................................................. 28
FOOD RETAIL SECTOR AND THE LARGEST CHEESE PRODUCERS ............................................. 28
COMPETITION FIELD ................................................................................................................ 31
CONSUMER PREFERENCES ...................................................................................................... 33
PRICES ...................................................................................................................................... 35
IMPORTS .................................................................................................................................. 36
EXPORTS .................................................................................................................................. 38
PROSPECTS .............................................................................................................................. 39
REFERENCES ............................................................................................................................ 41
GEORGIAN CHEESE MARKET OVERVIEW .................................................................................... 43
EXECUTIVE SUMMARY ............................................................................................................ 43
DOMESTIC PRODUCTION VOLUMES ....................................................................................... 43
KEY MARKET TRENDS .............................................................................................................. 45
FOOD RETAIL SECTOR AND THE LARGEST CHEESE PRODUCERS ............................................. 47
Cheese is milk's leap towards immortality. Cliff Fadiman
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COMPETITION FIELD ................................................................................................................ 48
CONSUMER PREFERENCES ...................................................................................................... 49
PRICES ...................................................................................................................................... 50
EXTERNAL TRADE .................................................................................................................... 51
PROSPECTS .............................................................................................................................. 52
REFERENCES ............................................................................................................................ 52
EUROPEAN CHEESE MARKET OVERVIEW .................................................................................... 54
EXECUTIVE SUMMARY ............................................................................................................ 54
MARKET OVERVIEW ................................................................................................................ 55
DRIVERS OF CHANGE: EU GROWTH RATES FALLING .............................................................. 56
STRATEGIES FOR CHEESE COMPANIES .................................................................................... 60
CONSOLIDATING MARKET POSITIONS .................................................................................... 61
IMPROVING VALUE-ADD POTENTIAL IN RETAIL MARKET ....................................................... 62
DEVELOPING SECONDARY PROCESSING AND DEDICATED SERVICES FOR RETAILERS ............ 63
CREATING FLEXIBILITY IN PRODUCT PORTFOLIO .................................................................... 64
DEVELOPING EXPORT BUSINESS ............................................................................................. 64
WHICH CUSTOMER SERVICE MODELS WILL PROVIDE SUSTAINABLE RETURNS? ................... 69
CONCLUSION ........................................................................................................................... 70
REFERENCES ............................................................................................................................ 71
CHEESE MARKET OVERVIEW OF THE UNITED ARAB EMIRATES .................................................. 72
EXECUTIVE SUMMARY ............................................................................................................ 72
DOMESTIC PRODUCTION VOLUMES ....................................................................................... 73
FOOD RETAIL SECTOR AND THE LARGEST CHEESE PRODUCERS ............................................. 75
COMPETITION FIELD ................................................................................................................ 77
CONSUMER PREFERENCES ...................................................................................................... 77
PRICES ...................................................................................................................................... 79
IMPORTS .................................................................................................................................. 80
EXPORTS .................................................................................................................................. 81
PROSPECTS .............................................................................................................................. 81
REFERENCES ............................................................................................................................ 83
CHEESE MARKET OVERVIEW OF SAUDI ARABIA ......................................................................... 84
EXECUTIVE SUMMARY ............................................................................................................ 84
DOMESTIC PRODUCTION VOLUMES ....................................................................................... 85
FOOD RETAIL SECTOR AND THE LARGEST CHEESE PRODUCERS ............................................. 87
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CONSUMER PREFERENCES ...................................................................................................... 88
PRICES ...................................................................................................................................... 89
IMPORTS .................................................................................................................................. 90
EXPORTS .................................................................................................................................. 90
PROSPECTS .............................................................................................................................. 91
REFERENCES ............................................................................................................................ 93
CHEESE MARKET OVERVIEW OF ALGERIA ................................................................................... 93
EXECUTIVE SUMMARY ............................................................................................................ 93
DOMESTIC PRODUCTION VOLUMES ....................................................................................... 93
FOOD RETAIL SECTOR AND THE LARGEST CHEESE PRODUCERS ............................................. 95
CONSUMER PREFERENCES ...................................................................................................... 97
IMPORTS .................................................................................................................................. 98
EXPORTS ................................................................................................................................ 100
PROSPECTS ............................................................................................................................ 101
REFERENCES .......................................................................................................................... 103
CHEESE MARKET OVERVIEW OF EGYPT .................................................................................... 103
EXECUTIVE SUMMARY .......................................................................................................... 103
DOMESTIC PRODUCTION VOLUMES ..................................................................................... 105
FOOD RETAIL SECTOR AND THE LARGEST CHEESE PRODUCERS ........................................... 107
CONSUMER PREFERENCES .................................................................................................... 109
PRICES .................................................................................................................................... 110
IMPORTS ................................................................................................................................ 110
EXPORTS ................................................................................................................................ 111
PROSPECTS ............................................................................................................................ 112
REFERENCES .......................................................................................................................... 114
Cheese & Cheese Product Labeling Guidelines ......................................................................... 114
Glossary of Commonly Used Cheese Making Terms ................................................................. 117
ANNEX ....................................................................................................................................... 119
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LIST OF TABLES AND FIGURES
1. WORLD CHEESE MARKET OVERVIEW Pie Chart 1. World Dairy Production for 2011 Graph 1. Dairy Production Table 1. Production of Cheese Table 2. Top Cheese Producers Graph 2. World Cheese Production Table 3. Per Capita Production of Cheese Table 4. Top Cheese Consumers (kg per capita) Table 5. Top Cheese Exporters in Monetary Value Chart 1. Consumer Trends in Dairy Production
2. ARMENIAN CHEESE MARKET BRIEF OVERVIEW
Table 6. Production of Cheese and Milk in Armenia Table 7. Average Annual Per Capita Consumption of Cheese (of all types) in Armenia Table 8. Average Prices of Cheese and Milk in Armenia Table 9. Foreign Trade of Cheese and Milk in Armenia Table 10. Armenian Exports of Cheese and Curds by Countries Table 11. Armenian Imports of Cheese and Curds by Countries
3. RUSSIAN CHEESE MARKET OVERVIEW Pie Chart 2. Dairy Production in Russia for 2011 Graph 3. Cheese Production Volumes of Russia Graph 4. Per Capita Production of Cheese in Russia Table 12. Spreadable Processed Cheese by Type in Russia: % Value Breakdown Table 13. Unprocessed Cheese by Type in Russia: % Value Breakdown Table 14. Sales of Cheese by Distribution Format in Russia Table 15. Cheese Company Shares in Russia Table 16. Sales of Cheese by Category in Russia Graph 5. Sales of Cheese in Russia Table 17. Forecast Sales of Cheese by Category in Russia
4. GEORGIAN CHEESE MARKET OVERVIEW Table 18. Cheese Production Volumes in Georgia Table 19. Spreadable Processed Cheese by Type in Georgia: % Value Breakdown Table 20. Sales of Cheese by Distribution Format in Georgia Table 21. Cheese Company Shares in Georgia Table 22. Sales of Cheese by Category in Georgia Graph 6. Sales of Cheese in Georgia Graph 7. Foreign Trade of Cheese and Curds in Georgia Table 23. Cheese and Curds in Georgia Table 24. Forecast Sales of Cheese by Category in Georgia
5. EUROPEAN CHEESE MARKET OVERVIEW Pie Chart 3. Dairy Production in Europe for 2011 Figure 1. Per Capita Cheese Consumption by Market Segment, Selected EU Countries, 2010
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Figure 2. Development of Milk Value for Different Product Outlets in the EU, Jan 2001 to May 2011
Figure 3. Gouda Cheese Margin Developments, Jan 2007 to May 2011 Figure 4. Brand Share of Leading Cheese Suppliers in EU, 2002 to 2009 Figure 5. Volume Developments in Europe’s Main Export Markets, 2002 to 2010 Figure 6. Average Export Value for Cheese, Selected Countries, 2010 Figure 7. Cheese Imports by Region, Europe’s Main Cheese Export Destinations, 2002 to
2010
6. CHEESE MARKET OVERVIEW OF THE UNITED ARAB EMIRATES Table 25. Spreadable Processed Cheese by Type in the UAE: % Value Breakdown Table 26. Sales of Cheese by Distribution Format in the UAE Table 27. Cheese Company Shares in the UAE Table 28. Sales of Cheese by Category in the UAE Graph 8. Sales of Cheese in the UAE Table 29. UAE Imports of Cheese and Curds Table 30. UAE Exports of Cheese and Curds Table 31. Forecast Sales of Cheese by Category in the UAE
7. CHEESE MARKET OVERVIEW OF SAUDI ARABIA Graph 9. Cheese and Fresh Cows' Milk Production in Saudi Arabia Graph 10. Per Capita Production of Cheese in Saudi Arabia Table 32. Spreadable Processed Cheese by Type in Saudi Arabia: % Value Breakdown Table 33. Unprocessed Cheese by Type in Saudi Arabia: % Value Breakdown Table 34. Sales of Cheese by Distribution Format in Saudi Arabia Table 35. Cheese Company Shares in Saudi Arabia Table 36. Sales of Cheese by Category in Saudi Arabia Graph 11. Sales of Cheese in Saudi Arabia Table 37. Cheese and Curd Imports by Saudi Arabia Table 38. Cheese and Curd Exports of Saudi Arabia Table 39. Forecast Sales of Cheese by Category in Saudi Arabia
8. CHEESE MARKET OVERVIEW OF ALGERIA Table 40. Spreadable Processed Cheese by Type in Algeria: % Value Breakdown Graph 12. Cheese & Fresh Cows' Milk Production in Algeria Table 41. Sales of Cheese by Distribution Format in Algeria Table 42. Cheese Company Shares in Algeria Table 43. Sales of Cheese by Category in Algeria Graph 13. Sales of Cheese in Algeria Table 44. Cheese & Butter Imports Comparison in 2010 and 2011 Table 45. Cheese and Curds Imports of Algeria Table 46. Cheese and Curds Exports of Algeria Table 47. Forecast Sales of Cheese by Category in Algeria
9. CHEESE MARKET OVERVIEW OF EGYPT Graph 14. Per Capita Production of Cheese in Egypt Table 48. Spreadable Processed Cheese by Type in Egypt: % Value Breakdown Table 49. Unprocessed Cheese by Type in Egypt: % Value Breakdown Graph 15. Production of Fresh Cows' Milk & Cheese in Egypt Table 50. Sales of Cheese by Distribution Format in Egypt Table 51. Cheese Company Shares in Egypt
Cheese is milk's leap towards immortality. Cliff Fadiman
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Table 52. Sales of Cheese by Category in Egypt Graph 16. Sales of Cheese in Egypt Table 53. Cheese and Curds Imports of Egypt Table 54. Cheese and Curds Exports of Egypt Table 55. Forecast Sales of Cheese by Category in Egypt
10. Cheese & Cheese Product Labeling Guidelines Table 56. Common or Usual Names for Typical Ingredients Used in Dairy Products
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Definition of Cheese
Cheese is a foodstuff made from curdled milk of various animals including cows, goats, sheep and water buffalo. Rennet is often used to induce milk to curdle, although some cheeses are curdled with acids like vinegar or lemon juice. Rennet is an enzyme obtained traditionally from the stomach lining of bovine calves, but more frequently in modern times a microbiological (laboratory produced) substitute is often used. Bacteria are added to cheese to reduce the pH and develop flavor, and some cheeses also have molds, either on the outer skin. Cheese colors range from snow white to deep yellow. In some parts of the world, such as Wisconsin in the USA, the milk fat is low in beta-carotene making the cheese a paler yellow than normal. In this case it is common to add annatto plant dye as a coloring agent. As a response to the loss of diversity in mass-produced cheeses, a cottage industry has grown up around home cheese making in some locations.
Major Classes of Cheese
• white molde (e.g. Camembert) • blue mold cheese (e.g. Roquefort) • red surface bacteria cheese (all "stinky" cheeses) • hard grating cheeses (e.g. parmesan) • cheese with eyes (e.g. Swiss, or Emmental) • pasta filata cheese (e.g. Mozzarella) • hard cheese (e.g. Cheddar) • semi-hard cheese (e.g. Edam and Gouda) • soft, unripened cheese (e.g. cottage) • whey cheeses (e.g. Brunost, Mysost, and Gjetost)
Etymology
The word “cheese” comes from Latin “caseus” from which the modern word “casein” is closely derived. The earliest source is from the proto-Indo-European root “kwat” that means “to ferment, become sour”.
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Harmonized System Codes (HS Code) for Cheese 0406 Cheese and Curd 040610 Fresh cheese “unripened or uncured cheese,” including whey cheese
and curd 040620 Grated or powdered cheese 040630 Processed cheese not grated or powdered 040640 Blue-veined cheese and other cheese containing veins produced by
“Penicillium roqueforti” 040690 Cheese (excluding fresh cheese, including whey cheese, curd,
processed cheese, blue veined cheese and other cheese containing veins produced by “Penicillium roqueforti” and grated or powdered cheese)
Fast Facts about Cheese
Archaeological surveys show that cheese was being made from the milk of cows and goats in Mesopotamia before 6000 B.C.
There are more than 400 kinds of cheese and over 2000 names.
Cheese is one of the most concentrated sources of key nutrients, including calcium, protein, phosphorus and vitamins A, B12 and D.
It takes 10 pounds of milk to make 1 pound of cheese.
Cheese was once used as money.
The first commercial cheese factory was founded on February 3, 1815 in Switzerland.
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WORLD CHEESE MARKET OVERVIEW
EXECUTIVE SUMMARY
The history of cheese is as old as the human species and is linked to the taming
of domestic animals 10,000 years B.C.
The Dutch have been producing cheese since 400 A.D. It is believed that cheese
has originated in Mesopotamia, where it was produced approximately 8,000 years ago.
Cheese, an age old dairy delicacy prepared from milk of sheep, goat or cow continues
to be a popular addition to every day meal, thanks to the high amount of protein,
calcium, minerals and vitamins it contains. The consumption of cheese, has improved
significantly across the world over the years and subsequently the art of cheese
making has now evolved into a lucrative business. Consequently, the international
cheese trade started to increase on a regular basis.
MARKET OVERVIEW
Several countries experience a significant growth in cheese production. Cheese
manufacturing in South America (particularly in Brazil and Argentina) is increasing.
Whereas EU milk production is constrained by the Common Agricultural Policy and the
milk quota system, which also limits the scope for increase in cheese production.
The Australian and New Zealand milk production has expanded tremendously for
years, resulting rapid growth in cheese production and exports. Russia and Ukraine
seem to regain some of their former production strength.
Despite the economic recession has put a check on the cheese consumption
pattern across the world and mostly in the developing nations, the future outlook for
global cheese market still remains bright with consumption of cheese projected to
grow by more than 20% during 2008-2015. Purchasing decisions, being increasingly
guided by price (cheaper yet healthy) and wholesome foods are taking their place
somewhere in the centre of the consumers’ demands. Consumers are additionally
exhibiting shifting preferences from imported cheese brands to locally produced
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cheese. Post recession, the demand for organic cheese is slated to make a comeback
and the manufacturers expand their production supplies.
Innovation and product diversification will be the most prominent market
strategies for manufacturers and suppliers in the post recession period. The product
mix is poised to change from traditional types of cheeses to new cheeses that suit the
demand in developing dairy markets like China and India. The growing demand for
dairy products that meet consumers changing nutritional needs will result in the strong
growth for innovative and healthier cheese products, such as lactose-free goat cheese
products or half-fat and reduced fat cheeses.
Europe and the United States lead the global cheese market by consumption.
However, the global cheese industry now shifts towards emerging markets such as Asia
Pacific and Latin America. Cheese consumption in developed economies will be fraught
by challenges, such as a matured market profile, limited growth in population and
most importantly the fast aging population, which account for lesser per capita
consumption than younger generation. Therefore, any further development in cheese
consumption within these markets is likely to be marginal and only associated with
changes in form and type of dairy products consumed. Meanwhile, developing markets
such as Asia, Latin America and the combined market of Middle East and Africa, are
projected to display superior growth rates over the period of 2006-2015. Large
population and rising incomes in these nations will prove to be the major driving
factors for exceptional growth in dairy consumption and cheese is bound to feel the
trickling down effect of the forecasted sanguine business conditions in the upstream
dairy industry.
The graph below represents the percentage breakdown of world dairy
production for 2011.
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Source: www.portal.euromonitor.com
The percentage breakdown of world dairy production for 2011 shows that 94%
of dairy production is fresh cows’ milk, and 3% — cheese production.
The graph below gives the opportunity to compare the world dairy production
with the one in Europe and Russia.
Source: www.portal.euromonitor.com
Dairy production in Europe has not changed seriously since 2006. This refers to
the Russian diary production by and large. Conversely, the world dairy production has
a growing trend. During 6 years since 2006 the dairy production has increased by
approximately 9%.
Key players operating in this market include Arla Foods, amba.; Belaya Reka
Holding; Bongrain, SA.; Belgioioso Cheese, Inc.; Crystal Farms Cabot Creamery
1% 3% 1%
1%
94%
Pie Chart 1. World Dairy Production for 2011
Production of Butter & Ghee
Production of Cheese
Production of Dried Cows' Milk
Production of Evaporated Milk
Production of Fresh Cows' Milk
2006 2007 2008 2009 2010 2011
World 589099.8 602852 614381.4 617618 631177.4 640079
Europe 236324.8 236355.9 236939 235144.9 236452.4 236928.9
Russia 32315.2 33066.4 33269.7 33419.3 32951.7 33118.3
0100000200000300000400000500000600000700000
thsd
tons
Graph 1. Dairy Production
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Cooperative, Inc.; Dairy Farmers of America, Inc.; Derivados De Leche La Esmeralda;
Dairy Crest Group, Plc.; Fonterra Group Cooperative Limited; Fromageries Bel, SA.;
Groupe Danone, S.A.; Great Lakes Cheese Company, Inc.; Grupo Industrial Lala, S.A. de
C.V.; Kraft Foods, Inc.; Land O' Lakes, Inc.; Leprino Foods Company, Inc.; Lactalis
McLelland, Ltd.; Meiji Dairies, Corp.; North Downs Dairy Co, Ltd.; Parmalat, S.p.A.;
Snow Brand Milk Products Co, Ltd.; Sancor Cooperativas Unidas Limitada; Saputo, Inc.;
Specialty Cheese Co, Inc.; Tillamook County Creamery Association; Valio Ltd.; Wyke
Farms, Ltd.; Wisconsin Cheese Group Inc., etc.
The table below represents the cheese production during the period of 2006-
2011.
Table 1. World Production of Cheese thsd tons
Country/Country Group Years
2006 2007 2008 2009 2010 2011 World 18962.1 19753.8 19914.9 19980.7 20544.7 20873.8 Asia Pacific 589.3 586.4 608.6 620.2 630.2 639.5 China 274.8 261.1 276.5 276.9 277.5 278.1 Japan 124.9 125.4 118.3 122.1 125.0 125.1 Armenia 14.7 16.9 17.3 17.5 17.1 17.7 Eastern Europe 2188.5 2269.7 2294.3 2320.3 2328.7 2361.6 Russia 587.0 602.6 602.2 614.2 603.4 607.5 Poland 579.7 594.2 594.1 633.5 664.2 685.3 Ukraine 234.5 263.9 253.6 248.3 239.0 233.2 Georgia 0.1 0.1 0.1 0.0 0.0 0.0 Middle East and Africa 1581.3 1822.0 1892.3 1785.7 1770.8 1817.5 Egypt 733.8 941.8 1039.1 940.2 940.2 966.0 Iran 293.3 300.6 254.6 275.9 271.8 267.7 Saudi Arabia 87.5 87.5 127.5 167.5 167.5 179.5 Western Europe 7930.5 8045.9 8030.4 8003.3 8158.4 8212.3 Germany 1971.1 1995.1 1991.6 2030.5 2078.4 2105.2 France 1827.8 1869.2 1860.6 1834.0 1897.7 1915.2 Italy 1121.9 1141.0 1147.2 1183.6 1173.9 1186.8 Netherlands 713.0 730.3 721.7 712.1 740.0 746.8
Source: www.portal.euromonitor.com
The cheese production in the world has a growing trend and despite the crisis,
it goes on rising. The figures above prove that the global financial crisis in 2009 has left
out the world cheese production. Moreover, in 2009 the world cheese production
increased by 65.8 thousand tons over the previous year, and by 564 thousand tons in
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2010 over 2009. In 2011, the world cheese production accounted 20873.8 thousand
tones which excels the production of the previous year by 329.1 thousand tons.
The following table shows top cheese producers in terms of tonnage.
Table 2. Top Cheese Producers Country thsd tons
United States 4275 Germany 1927 France 1884 Italy 1149 Netherlands 732 Poland 594 Brazil 495 Egypt 462 Argentina 425 Australia 395
Source: USDA, Food and Agricultural Organization
The US is a leader (4,275 thousand tons) in cheese production as the table above shows. The second and third places belong to Germany (1,927 thousand tons) and France (1,884 thousand tons).
The graph below represents the world cheese production volumes more
clearly.
Source: www.portal.euromonitor.com
2006 2007 2008 2009 2010 2011
World 18962.1 19753.8 19914.9 19980.7 20544.7 20873.8
18000
18500
19000
19500
20000
20500
21000
21500
thsd
tons
Graph 2. World Cheese Production
Cheese is milk's leap towards immortality. Cliff Fadiman
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The graph above shows that the world cheese production has the trend of
growth. In contrary, the per capita cheese production has remained comparably
constant. The table below can be set as a proof to it.
Table 3. Per Capita Production of Cheese kg
Country/Country Group Years
2006 2007 2008 2009 2010 2011 World 2.9 3.0 3.0 2.9 2.9 2.9 Asia Pacific 0.2 0.2 0.2 0.2 0.2 0.2 Azerbaijan 5.2 5.2 6.0 6.0 6.1 6.2 Armenia 4.8 5.5 5.6 5.7 5.7 5.7 Tajikistan 1.9 2.1 2.2 2.3 2.4 2.5 Eastern Europe 6.6 6.8 6.9 7.0 7.0 7.0 Lithuania 25.9 23.5 27.1 22.9 23.4 24.2 Poland 15.2 15.6 15.6 16.6 17.4 17.9 Belarus 11.8 12.5 14.4 15.1 16.4 17.3 Latvia 9.8 10.2 10.4 12.6 15.0 16.2 Russia 4.1 4.2 4.2 4.3 4.2 4.3 Georgia 0.0 0.0 0.0 0.0 0.0 0.0 Middle East and Africa 1.4 1.6 1.6 1.6 1.5 1.5 Israel 18.2 18.2 18.0 16.9 16.6 16.2 Egypt 10.1 12.7 13.7 12.2 11.9 12.0 Saudi Arabia 3.6 3.5 5.1 6.5 6.4 6.7 North America 15.3 15.4 15.5 15.6 16.0 16.2 Canada 11.9 12.3 11.9 11.6 12.2 12.3 USA 15.7 15.8 16.0 16.1 16.4 16.6 Western Europe 16.8 17.0 16.8 16.7 16.9 16.9 Denmark 61.7 63.5 60.6 58.2 52.8 50.9 Netherlands 43.7 44.6 44.0 43.2 44.6 44.8 Ireland 33.4 33.4 40.5 37.4 39.3 40.9 France 29.8 30.2 29.9 29.4 30.2 30.3 Iceland 28.5 29.9 31.4 29.1 28.6 28.7 Germany 23.9 24.4 24.2 24.8 25.4 25.8 Switzerland 26.2 26.1 26.3 25.8 25.9 25.8 Austria 22.8 23.2 23.0 22.6 23.5 23.6 Italy 19.1 19.3 19.2 19.7 19.5 19.6
Source: www.portal.euromonitor.com
The only reason that the world per capita production of cheese has remained
stable is the population growth as the production volumes has increased.
The table below shows top cheese consumers.
Cheese is milk's leap towards immortality. Cliff Fadiman
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Table 4. Top Cheese Consumers (kg per capita)
Country kg Greece 31.1 France 26.1 Iceland 25.4 Germany 22.6 Switzerland 21.4 Netherlands 21 Italy 20.9 Finland 20.7 Turkey 19.4 Sweden 18.9 Austria 17.4 Czech Republic 16.7 Israel 16.4 Norway 15.3 United States 14.8 Canada 12.3 Australia 12 Argentina 11.3 Hungary 11 United Kingdom 10.9 Poland 10.8
Source: USDA, Food and Agricultural Organization
Per capita cheese consumption heads Greece with 31.1 kg. The second place
belongs to France (26.1 kg), and the third one belongs to Iceland (25.4 kg).
The table below shows top cheese exporters.
Table 5. Top Cheese Exporters in Monetary Value Country USD
France 2,658,441,000 Germany 2,416,973,000 Netherlands 2,099,353,000 Italy 1,253,580,000 Denmark 1,122,761,000 Australia 643,575,000 Belgium 567,590,000 Ireland 445,240,000 United Kingdom 374,156,000
Source: USDA, Food and Agricultural Organization
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The top heads France with USD 2,658,441,000 exports of cheese. The second and third places belong to Germany (USD 2,416,973,000) and Netherlands (USD 2,099,353,000).
The consumer trends of dairy production in developing and developed markets are undoubtedly different; the needs of the developed markets depend mostly on food quality and the one of the developing markets depend mostly on its availability and convenience. More detailed view of both markets’ peculiarities is represented below.
The inclination towards healthier lifestyle makes the representatives of the developed markets require healthy food of organic origin. For convenience, it is preferable that the production may be consumed both by adults and children. Convenience implies the package formats.
The preferences of the developing markets’ representatives are different. Affordability and the attempts to combine low price, nutritional aspects of food and quality are the main peculiarities of the developing markets. Westernization and preference for foreign goods can also affect on these markets.
CONCLUSION
Among the dairy commodities, cheese prices have traditionally been more
stable — reflecting the wide variety of cheese available, each with its own distinct
characteristics making it less subject to the same degree of supply and demand
fluctuation as the standardized products, such as milk powder or butter. For most of
2011, cheese prices (cheddar) stayed within the range USD 4,400 to USD 4,500 per ton.
However, in October, they began to follow the downwards of other dairy products,
Chart 1. Consumer Trends in Dairy Production
DEVELOPED MARKETS
• Health • Products Both for Kids and
Adults • Authenticity • Provenance • Convenience
DEVELOPING MARKETS
• Affordability • Nutrition • Quality at Low Price • Westernization • Preference for Foreign
Goods
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and have remained around USD 4,000 per ton since until March. In April, prices
registered a further fall, to USD 3,700. Trade in cheese is forecast to grow by 3.1% in
2012, to 2.5 million tons, sustained by robust import demand. The world cheese
market is the most difficult dairy market to classify. One apparent anomaly is that a
number of major cheese producing and exporting countries are also important
importers, including (in order of volume) the United States, Australia, the EU and
Switzerland. Most often, purchases by this group of countries reflect import quotas
under trade agreements and also the highly specific nature of some cheeses, including
those with restrictions on the use of their names and areas of origin. Elsewhere,
several of the most important cheese importers, including the Russian Federation,
Japan, Egypt, Saudi Arabia, the Republic of Korea and Mexico, focus more on industrial
cheese, both for direct consumption and for use by the processing industry. The EU
remains the major cheese exporter, accounting for almost 30% of world trade, which
does not include the substantial amount of cheese that is traded among the EU
countries themselves. Other important exporters are Saudi Arabia, New Zealand, the
United States, Egypt, Australia, Belarus, Ukraine, Argentina, Switzerland, Uruguay and
Turkey.
REFERENCES
www.portal.euromonitor.com
USDA, Food & Agricultural Organization
Cheese is milk's leap towards immortality. Cliff Fadiman
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ARMENIAN CHEESE MARKET BRIEF OVERVIEW
BRIEF OVERVIEW
Armenians have traditionally regarded cheese as an essential part of their diet. The art of cheese making is a carefully protected tradition. Armenians eat cheese at breakfast and as appetizer.
Despite the difficulties in cheese industry in Armenia, the producers do their best for making the production competitive in the market, and the entrepreneurs are investing much capital and energy in this time-honored industry. The farmers have been using summers for centuries in the high Alpine meadows to benefit from the lush meadows for milk production.
The most common types of Armenian cheeses are Lori and Chanakh. Both are salty, white cheeses aged in brine water. Lori, Chanakh, Suluguni, Mozzarella, Chechil, Smoked Chechil, Havarti, Holland, Cheddar, Emmental, Tashir, Camembert, Tomme and Blue cheeses are made from cow milk.
Another popular type of Armenian cheese is the String cheese. The strings are formed because of the special technology of pulling the cheese during processing.
Sheep cheeses have also been produced for centuries in Armenia. Kateh, Pemaggio and Blue cheeses are made from sheep milk.
MARKET DATA
For 2008-2011, the average production of cheese in Armenia amounted to 17.3 thousand tons. Despite the domestic milk production volumes decreased in 2009, the production volumes of cheese increased.
In 2011, the volumes of cheese production increased by 2.8% (in volume) over the 2010 record. In January-October 2012, the production volumes amounted to 15385.1 tons which is 0.2% more than the production volume of the relevant period of 2011 (see the table below).
Table 6. Production of Cheese and Milk in Armenia
Production Measuring Unit
2008, Jan-Dec
2009, Jan-Dec
2010, Jan-Dec
2011, Jan-Dec
2012, Jan-Oct
Cheese tons 17311.7 17464.7 17047.1 17525.0 15385.1 Milk mln liters 313.1 286.9 299.9 301.3 301.8
Source: www.armstat.am
According to the National Statistic Service data of Armenia, an average annual per capita consumption of cheese in Armenia is about 11 kilo.
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Table 7. Average Annual Per Capita Consumption of Cheese (of all types) in Armenia
kg
2008, Jan-Dec 2009, Jan-Dec 2010, Jan-Dec 2011, Jan-Dec 12.7 12.2 9.5 9.8
Source: www.armstat.am
The pricing of cheeses and milk in Armenia is represented in the table below. The prices for cheese are correlated with the prices of milk. For 2007-2012, the average retail price for milk in Armenia amounted to AMD 323.2.
In 2012, the retail price of cheese “Chanakh” decreased by 9% over the previous year. And the retail price of cheese “Lori” decreased by 9.3% in 2011 over the 2010 record.
Table 8. Average Prices of Cheese and Milk in Armenia
Product Measuring Unit 2007 2008 2009 2010 2011 2012
Cheese "Chanakh" AMD per kilo 1403 1456 1461 1563 2019 1838 Cheese "Lori" AMD per kilo 1565 1641 1662 1795 2367 2148
Milk AMD per litre 296 304 326 328 342 343 Source: www.armstat.am
FOREIGN TRADE
The foreign trade of cheese and milk in Armenia is displayed in the table below.
Table 9. Foreign Trade of Cheese and Milk in Armenia tons
Category 2007 2008 2009 2010 2011 2012
Exports of Cheese 567.2 473.8 336.9 496.4 439.8 903.6 Imports of Cheese 877.3 760.0 569.1 725.8 1019.2 1056.2 Imports of Milk (all types) 5224.4 3494.0 4167.7 3636.1 3507.2 3066.5
Source: www.armstat.am
In 2011, the imports of cheese exceeded the exports by almost 2.3 times and by 1.2 times in 2012. On average, about 536.3 tons of cheese has been exported from Armenia and 834.6 tons has been imported from Armenia annually since 2007. The volume of imported milk is on average 3849.3 tons annually.
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The exports of cheese has almost doubled in 2012 in compaison with 2011 figure.
The figures for the Armenian exports of cheese and curds by countries are represented in the table below.
Table 10. Armenian Exports of Cheese and Curds by Countries
Country Measuring Unit 2010 2011 2012
USA tons 95.9 69.7 36.2
thsd USD 474.8 353.9 183.9
UAE tons 3.2 1.3 0.8
thsd USD 21.8 12.7 6.8
Netherlands kg 16.6 — —
thsd USD 0.1 — —
Ukraine kg 85.7 — —
thsd USD 0.5 — —
Russia tons 393.5 368.9 859.4
thsd USD 1181.2 1488.4 2113.1
Georgia tons 3.8 — 7.3
thsd USD 10.1 — 31.6 Source: www.customs.am
The volumes of exports of cheese and curds from Armenia to Russia have a growing trend. In 2011, the exports of cheese and curds to Russia increased by 26% in value and decreased by 6.3% in volume over the 2010 record. This discrepancy occurred due to prices.
Table 11. Armenian Imports of Cheese and Curds by Countries
Country Measuring Unit 2010 2011 2012
USA tons 0.4 — 2.2
thsd USD 3.8 — 18.6
Austria tons — 1.4 6.2
thsd USD — 4.9 35.8
Belarus tons 4.3 5.7 1.9
thsd USD 23.8 33.1 12.9
Belgium tons 1.6 — —
thsd USD 7.8 — —
Bulgaria tons 10.3 28.4 6.6
thsd USD 36.9 72.4 24.3
Germany tons 333.3 420.4 378.3
thsd USD 2020.4 2786.6 2429.3
Denmark tons 11.6 16.6 9.8
thsd USD 83.2 142.5 68
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Ireland tons — 20 —
thsd USD — 68 —
Italy tons 8.3 13.9 20.2
thsd USD 89.8 154 172.5
Spain tons — — 0.006
thsd USD — — 0.1
Iran tons — 9.2 5.6
thsd USD — 31.8 19.4
Poland tons 16.2 20.3 12.9
thsd USD 81.9 106 64.1
Lithuania tons — 4.8 5.8
thsd USD — 30.7 37.1
Greece tons 2.3 2 2.1
thsd USD 19.6 20.4 20.7
Morocco tons 0.03 — —
thsd USD 0.1 — —
UK tons — 0.154 0.022
thsd USD — 3.2 0.7
Netherlands tons 8.8 6.3 5.8
thsd USD 59.5 53.5 46.6
New Zealand tons 9.4 79.2 343
thsd USD 33.2 269.3 1193.8
Switzerland tons 6 0.01 0.002
thsd USD 20.7 0.3 0
Ukraine tons 49.4 84.4 23.9
thsd USD 168.8 282 76.3
Czech Republic tons — — 0.015
thsd USD — — 0.1
Romania tons 26.3 29.3 —
thsd USD 91 97 —
Russia tons 194.9 213 162.6
thsd USD 882.4 1052.7 791.4
Serbia tons — 0.28 0.788
thsd USD — 2.4 4.3
Slovakia tons — — 0.002
thsd USD — — 0
Finland tons 41.1 57.5 59.2
thsd USD 179.7 303.2 327.4
France tons 1.8 6.5 9.2
thsd USD 33.7 79.9 90.6 Source: www.customs.am
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REFERENCES
www.armstat.am
www.customs.am
http://www.armcheese.com/armcheeses.html
RUSSIAN CHEESE MARKET OVERVIEW
EXECUTIVE SUMMARY
Dairy products are one of the most popular and important goods for the
Russian population. One of these main products is cheese. According to statistics
cheese is a daily ration of most Russians. In Soviet Union only solid and melting cheese
were presented in Russia, and the range was poor.
In the early 1990's, cheese market was considerably changed and variety of cheese
kinds has appeared: moldy cheese, cheese with various additions (nuts, ham, paprika,
mushrooms, etc.) and many others.
Geographically, cheese producers in Russia are mainly located in Ural, Volga
and West Siberian regions. These regions produce more than half of total cheese
volume.
The problems existing in the Russian cheese market are as follows:
• raw material base downturn, which was due to the large reduction of livestock and raw milk production;
• lack of normal standards of quality of milk, which significantly impairs the quality of cheese.
Therefore, imported cheeses have an advantage over the Russian cheeses in terms of quality.
DOMESTIC PRODUCTION VOLUMES
The pie chart below represents the percentage breakdown of the dairy
production in Russia for 2011.
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Source: www.portal.euromonitor.com
The percentage breakdown of the Russian dairy production shows that 97% of
dairy production belongs to fresh cows’ milk. Production of cheese accounts 2%.
Despite the crisis, the cheese production volumes have not suffered a lot. Just
vice versa. The cheese production reached a peak in 2009. It increased by almost 2%
over the previous year. The following year was a year of decrease, but in 2011 the
trend of growth became obvious.
Source: www.portal.euromonitor.com
0%2%
0%1%
97%
Pie Chart 2. Dairy Production in Russia for 2011
Production of Butter & Ghee
Production of Cheese
Production of Dried Cows' Milk
Production of Evaporated Milk
Production of Fresh Cows' Milk
2006 2007 2008 2009 2010 2011
Russia 587.0 602.6 602.2 614.2 603.4 607.5
570.0575.0580.0585.0590.0595.0600.0605.0610.0615.0620.0
thsd
tons
Graph 3. Cheese Production Volumes of Russia
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The per capita cheese production of Russia is portrayed below.
Source: www.portal.euromonitor.com
The graph above shows that the per capita production of cheese in Russia is
higher than the one in the world. The figures prove that the deviation of the Russian
and world cheese productions amounts to circa 1.3 kilos. This means that the Russian
cheese production betters the one of the world by approximately 1.3 kilos.
Russia is a prime destination for European cheese, absorbing almost one third of total
EU exports.
According to analysts, the segment of cheese made in Russia can grow only at
the expense of the protectionist policy of the state.
To support Russian manufacturers, cheese customs duties were increased in 2011.
While a regressive scale was previously in effect (the duty amount reduced as the
product price grew), a flat rate in the amount of 15% of the cheese customs value but
not less than 0.5 euro per 1 kg was introduced.
Traditionally hard yellow cheeses such as Edam, Maasdam, Gauda and
Gollandsky dominate the Russian unprocessed cheese category, accounting for an
expected combined share of 66% in 2011, with value-added variants such as Gauda
and Maasdam set to see slight increases in share to 8% and 7% respectively. However
Gollandsky, with a 44% share in 2011, is set to see share fall to the benefit of new
types of cheese with higher average unit price. At the end of the review period the
growth in share of soft cheese was being driven by an increase in consumption of
2006 2007 2008 2009 2010 2011
World 2.9 3.0 3.0 2.9 2.9 2.9
Russia 4.1 4.2 4.2 4.3 4.2 4.2
kgGraph 4. Per Capita Production of Cheese in Russia
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premium imported cheese brands and by the development by local manufacturers of
economy and mid-priced variants.
The most preferential for Russians are natural cheeses, which are more
healthful. According to analysts, Russian buyers prefer hard-pressed cheese; 41% of
the population purchases this product most often — once or twice a week on the
average.
In the light of this, packaged hard cheese sees the fastest growth, both in
volume and current value terms. The collaboration of packaged hard cheese
manufacturers with leading chained retailers, in addition to the development of
modern retail formats, has made packaged hard cheese more widely available. Many
customers have realized the convenience of this product type and opted for it even
though the unit price is higher than unpackaged hard cheese.
Processed cheese takes only about 1/4 of retail sales in value terms.
The overall growth of the Russian economy accelerates the pace of life, and the
consumer is running out of time to buy food in stores.
Popularity of cheeses with a spicy and rich taste, especially those varieties that
are made from goats and buffaloes milk is grown. Feta cheese and Brynza is also in
demand. This group of cheeses is growing mainly due to import. For example, cheeses
with mold or blue cheese, come mainly from France and Germany. The most popular
are blue cheeses in Russia, such as Roquefort, Seint Agur and Dor Blue.
The share of private label segment of the Russian cheese market is still very
small. A great share of the market belongs to segment of natural cheeses, and private
brands are mainly represented in fused cheese segment. In this situation, retail chains
brands have difficulties in supporting of visible presence. Nevertheless, growth of
private label segment, which will take а place as market saturation, can be expected.
The tables below represent percentage value breakdowns of spreadable processed
cheeses and unprocessed cheeses by type.
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Table 12. Spreadable Processed Cheese by Type in Russia: % Value Breakdown % retail value rsp
Cheese Type Years
2006 2007 2008 2009 2010 2011 Cream Cheese 22.0 24.5 25.5 25.0 25.5 26.5 Reconstituted Cheese 78.0 75.5 74.5 75.0 74.5 73.5 TOTAL 100.0 100.0 100.0 100.0 100.0 100.0
Source: www.portal.euromonitor.com
We can see that the reconstituted cheeses are less preferable than the cream
ones despite the fact that the share of the cream cheeses has increased dramatically
and the share of the reconstituted cheese has decreased. Nevertheless, the share of
the cream cheeses in Russia is less than the one of the reconstituted cheeses. This
phenomenon occurs mainly because the population in the world tends to lead a
healthier life. The point is many types of cream cheeses have fewer calories than
reconstituted cheeses.
The following table refers to unprocessed cheeses in Russia.
Table 13. Unprocessed Cheese by Type in Russia: % Value Breakdown
% retail value rsp
Cheese Type Years
2009 2010 Brie 3.5 3.6 Brynza 5.0 4.8 Camembert 3.0 3.3 Edam 6.0 7.3 Feta 4.0 4.3 Gauda 6.2 7.4 Gollandsky 44.5 44.0 Maasdam 6.2 6.8 Mozzarella 1.5 1.3 Others 20.1 17.2 TOTAL 100.0 100.0
Source: www.portal.euromonitor.com
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Gollandsky cheese has been the most popular among the unprocessed cheeses
in Russia. It includes about 44% share. The shares of all the unprocessed cheeses have
increased during 2009-2010 except for Brynza, Gollandsky and Mozzarella.
KEY MARKET TRENDS
In summer 2011 new procedures regulating trade between Russia, Belarus and
Kazakhstan came into force. From 1 July 2011, all borders between the three states
were effectively removed, thereby facilitating faster and easier trade, which in turn is
impacting many product categories including cheese. Belarusian manufacturers who
benefited from the advantage of lower commodity milk prices and labor costs,
alongside favorable import VAT terms for imports, started expanding into the Russian
market. However, the rise in supply and fall in price at manufacturer level did not
cause retail prices to decrease.
While all cheese categories saw growth during the review period, packaged
hard cheese saw the fastest growth, both in volume and current value terms. The
collaboration of packaged hard cheese manufacturers with leading chained retailers, in
addition to the development of modern retail formats, made packaged hard cheese
more widely available. Many customers realized the convenience of this product type
and opted for it even though the unit price is higher than unpackaged hard cheese. In
2011 soft cheese is expected to enter a new stage of development, with many
manufacturers launching production facilities in Russia for this product; this increased
focus on soft cheese is due to the low level of competition in the category, the
relatively short production cycle and increased competition in other categories.
FOOD RETAIL SECTOR AND THE LARGEST CHEESE PRODUCERS
The structure of the Russian retail food market has also undergone major
change in the past ten years, though it is still highly fragmented, with the majority of
modern retail grocery stores located in the major urban areas of Moscow and St.
Petersburg. The main distribution channels for food have become supermarkets and
hypermarkets both domestic and foreign owned (Planet Retail, 2009). In Moscow the
leading retailers are X5 Retail Group, Dixi, Kopeika and Sedmoi Kontinent. In St
Petersburg the leading retailers are X5 Retail Group, Lenta and O'Key.
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The table below represents the sales of cheese by distribution format.
Table 14. Sales of Cheese by Distribution Format in Russia % retail value rsp
Distribution Format Years
2006 2007 2008 2009 2010 2011 Store-Based Retailing 100.0 100.0 100.0 99.9 99.8 99.8
*Grocery Retailers 85.0 83.0 85.2 90.7 90.8 93.3 **Supermarkets/Hypermarkets 22.5 26.5 32.5 39.0 45.0 53.0
**Discounters - - - - - - **Small Grocery Retailers 47.5 46.5 45.7 45.2 39.2 34.3
***Convenience Stores 6.5 7.5 8.5 9.0 10.0 11.0 ***Independent Small Grocers 41.0 39.0 37.0 36.0 29.0 23.0
***Forecourt Retailers - - 0.2 0.2 0.3 0.3 **Other Grocery Retailers 15.0 10.0 7.0 6.5 6.5 6.0
*Non-Grocery Retailers 15.0 17.0 14.8 9.2 9.1 6.6 **Health and Beauty Retailers - - - - - -
**Other Non-Grocery Retailers 15.0 17.0 14.8 9.2 9.1 6.6 Non-Store Retailing - - - 0.1 0.2 0.2
*Vending - - - - - - *Home Shopping - - - - - -
*Internet Retailing - - - 0.1 0.2 0.2 *Direct Selling - - - - - -
TOTAL 100.0 100.0 100.0 100.0 100.0 100.0 Source: www.portal.euromonitor.com
Convenience Stores
Convenience stores have gradually been replacing traditional small Russian
outlets. The domestically owned leaders are Lukoil and TNK-BP. There are only a
couple of international operators in the convenience store sector. The Global
economic crisis has affected the development of the modern retail sector, with many
expansion projects being put on hold (Planet Retail, 2009).
Supermarkets
Supermarkets are the leading food channel in Russia and are dominated by
domestic retailers. The market leader is X5 Retail Group with over 1,600 outlets in St
Petersburg, Moscow and the Ural region. Its retail banners are discount Pyaterochka
supermarkets and larger Perekrestok supermarkets (Planet Retail, 2009).
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Hypermarkets
Hypermarkets are generally located in the suburban areas of the larger cities. In
Moscow, the foreign owned market leaders are Auchan, Metro groups “Real Stores”,
Lotte department stores, Globus and SOK's Prisma outlets. Domestic retailers in the
hypermarket sector are Lenta, X5 Retail Group, O'Key, Mosmar, Sedmoi Kontinent,
Alpi, Magnit and Kopeika (Planet Retail, 2009). In 2009 most Russian hypermarket
operators put expansion plans on hold, with many facing liquidity problems. This may
give foreign operators opportunities to establish new stores due to fallen real estate
prices or through acquisitions of those that have come into debt (Planet Retail, 2009).
E-Commerce
Internet retailing is only just emerging in Russia. Internet usage in Russia stands
at 32% of the population with the majority of users (over 70%) in Moscow. Virtual
grocery stores are mainly limited to the Moscow region with Sedmoi Kontinent the key
player (Planet Retail, 2009).
Future Trends
Price orientated supermarkets and neighborhood stores dominated by
domestic retailers may become the fastest growing formats in the short term. The
hypermarket sector looks likely to continue domination by foreign investors such as
Auchan and Metro Group, in the major cities of St. Petersburg, Moscow and other
regional cities with above average incomes. In the long-term price oriented
supermarkets and hypermarkets formats in and around Russia's largest cities look to
be the preferred format (Planet Retail, 2009). The table below represents the company
shares occupied in cheese and/or dairy production in Russia.
Table 15. Cheese Company Shares in Russia % retail value rsp
Company Years
2006 2007 2008 2009 2010 Valio St Petersburg ZAO 9.3 7.9 7.5 8.1 9.0 Karat ZAO 5.5 5.7 5.7 4.8 4.8 Hochland Russland OOO 4.0 4.0 4.3 3.6 3.7 Wimm-Bill-Dann Produkty Pitania OAO 2.3 2.4 2.5 2.7 3.1 Käserei Champignon Hofmeister KG 2.8 2.8 2.9 2.4 2.6 FrieslandCampina Russia - - 3.3 2.3 2.5 Syr Starodubskiy TnV 2.5 2.5 2.5 2.3 2.3 Pieno Zvaigzdes AB 2.4 2.4 2.5 2.4 2.3
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Rokiskio Suris AB 2.2 2.2 2.3 2.0 2.1 Ostankinsky Molkombinat OAO 2.1 2.2 2.2 2.2 2.1 Lactalis, Groupe 1.6 1.6 1.7 1.5 1.6 Belaya Reka OAO 1.7 1.8 1.9 1.7 1.6 Pereslavsky Molkombinat 1.6 1.6 1.5 1.4 1.4 Arla Foods Artis OOO 0.5 0.9 0.9 1.3 1.4 RostAgroExport ZAO 1.5 1.5 1.5 1.4 1.4 Nordmilch eG 1.5 1.6 1.6 1.2 1.1 Nevskie Syry Group - - - 1.1 1.1 Cherkizovsky Molkombinat OAO 2.6 2.7 2.7 2.2 1.1 Yantar ZAO 1.2 1.2 1.2 1.0 1.0 Lacto Juust AS 1.1 1.1 1.2 1.0 0.9 Fromageries Bel SA 1.3 1.3 1.2 1.1 0.8 Sevsky Maslodel ODO 0.4 0.4 0.4 0.4 0.4 Unimilk Kompania OAO 0.4 0.4 0.4 0.4 0.4 Kezsky Syrzavod OAO - 0.7 0.6 0.6 0.3 Berglandmilch GmbH 0.3 0.3 0.3 0.3 0.3 Unilever Rus OOO 0.4 0.4 0.4 0.3 0.3 Syrodel ZAO 0.4 0.4 0.4 0.4 0.3 Molochnyi Alliance OOO 0.3 0.3 0.3 0.3 0.3 Stavropolsky Molkombinat OAO 0.3 0.3 0.3 0.3 0.3 Giaginsky Maslozavod 0.2 0.2 0.2 0.2 0.2 Severnoye Moloko PTK ZAO 0.3 0.3 0.3 - - Royal Friesland Foods NV 2.9 3.1 - - - Private Label 0.6 0.7 0.8 1.0 1.0 Others 45.7 45.0 44.4 48.3 48.2 TOTAL 100.0 100.0 100.0 100.0 100.0
Source: www.portal.euromonitor.com
COMPETITION FIELD
In 2010 Valio St Petersburg ZAO led sales with a 9% value share. The company
benefited from its strong presence in most developed categories and its long-standing
presence in Russia, with local customers being familiar with Valio products since the
Soviet era. Its leading brand is Oltermanni hard cheese, which registered a 5% value
share in the category overall in 2010. Consumers believe in the high quality of Finnish
cheeses and willingly buy them. Karat ZAO held the second position and a value share
of 5% in 2010. Its generic cheese products, perceived as cheap alternatives to more
expensive cheese brands, are rather stable in their position on the market, however
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are expected to lose popularity in the face of increased competition and a shrinking
consumer base.
Valio St. Petersburg ZAO saw the biggest increase in value share in 2010, with
value sales rising by 25%. This growth rate was faster than that seen for the cheese
category as a whole, hence its share rose by one percentage point. The company
benefited from an upturn in consumer demand, with customers opting for
conveniently packaged value-added products. As example, Russians appreciated low-
calorie or lactose-free cheeses. The strong reputation of the company and the
marketing support its brands receive are driving sales alongside the widening
distribution of the company’s products.
In 2010-2011 many players within the cheese category paid attention to
underdeveloped product areas. Soft cheese manufacturing facilities were launched in
Russia by companies such as Syr Starodubskiy TnV, Karat OAO and Giaginsky
Maslozavod. These companies are planning to focus on the low/mid-price and mid-
price segments. Soft cheese has been chosen for such development as it has a faster
production cycle but offers the same nutritional value as hard cheese. Taking into
account the relatively low level of competition in the category, this strategy can be
considered as offering good growth potential.
Strong distribution remained a key to success with large players holding the
competitive advantage over smaller companies due to their ability to meet the
challenging and large scale requirements of major retailers. Relationships with retailers
are becoming increasingly important, alongside the growth of the modern chained
retailing channel in the distribution of cheese.
Domestic manufacturers have a strong presence in the low/mid-priced and
economy segments. However with a limited product offer, they are facing growing
competition. The expansion of Belarusian manufacturers is threatening the value share
of local manufacturers. International manufacturers are gaining share in the premium
and standard segments, while in the economy segment Belarusian manufacturers are
also expected to see a significant increase in sales in 2011.
In 2011 Russia witnessed a new premium cheese launch. Groupe Lactalis
launched a new line of premium soft cheese under the Président Rondelé brand. The
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launch is indicative of the recovery of the soft cheese category and reflects the
renewed interest of manufacturers in the premium segment.
The cheese category was the focus of a range of promotional activities at the end of
the review period. Kirill Zaytsev, a popular Russian photographer, made a series of
designs for Dziugas hard cheese brand from Zemaitijos Pienas UAB Lithuania. Yana
Churikova, a popular Russian television star, participated in the campaign. In addition,
the Sous advertising agency produced a series of television advertisements for Käserei
Champignon Hofmeister KG’s Fetaki brand; the campaign was launched in the middle
of 2011.
Private label cheese remained an underdeveloped segment, with
manufacturers making attempts to launch private label products in the mid-priced and
premium segments. However, there were no successful launches as consumers still
consider private label to represent lower quality and cannot understand how private
label cheese can possibly have a premium positioning.
CONSUMER PREFERENCES
Russian consumers think that selection of Russian yellow hard cheeses is
narrow, though exactly domestic manufacturers enjoy higher consumer credit because
domestic products are perceived as fresher, more natural and of higher quality.
Besides, consumers attribute freshness to cheeses sold by weight and store-packed
offerings. Cheeses in factory package are perceived as less fresh and more expensive.
Today about 80% of sales volume in hard cheeses is provided by unpacked products.
The attractive package is not yet a choice-driving factor for consumers on the current
stage of Russian cheese market development. However, in short-term perspective as
the market will be getting more branded the importance of package is set to grow.
Consumer choice is currently driven by sheer functionality: product exterior — color,
density, shape and piece weight; package/expiry date; price. Importance of emotional
and value attributes is only to be settled. The majority of consumers have poor
knowledge of brands offered by the market. According to consumers, this situation is
determined by lack of information and advertising, and in some cases — by
unattractive logos of manufacturers on package.
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The share of cream cheese within spreadable processed cheese grew
significantly during the review period. Despite being more expensive than
reconstituted cheese, this tasty light cheese is gaining popularity among Russians,
especially among the urban population.
The consumer preferences are best portrayed by the volumes of sales. The
table below represents the sales of cheese by type for 2006-2011.
Table 16. Sales of Cheese by Category in Russia thsd tons
Production Years
2006 2007 2008 2009 2010 2011 Processed Cheese 122.1 131.8 135.0 137.7 142.0 148.0
Spreadable Processed Cheese 90.7 97.9 100.4 102.7 106.4 111.2 Unspreadable Processed Cheese 31.4 33.9 34.6 34.9 35.6 36.8
Unprocessed Cheese 389.9 411.7 405.0 409.0 423.0 445.5 Hard Cheese 322.3 338.6 333.4 335.1 347.5 363.8 Soft Cheese 67.7 73.2 71.6 73.9 75.5 81.7
Spreadable Unprocessed Cheese — — — — — — Cheese 512.0 543.6 540.1 546.6 565.0 593.5
Source: www.portal.euromonitor.com
The demand for unprocessed cheese is higher than the one of the processed
cheese. Among the sales of the unprocessed cheese in Russia, a dominant place takes
hard cheese.
Obviously, the crisis has had a little influence on the budget of the consumers
who prefer to have cheese on their tables. This can also be proved by the graph below
that represents only the total sales of cheese in Russia.
Source: www.portal.euromonitor.com
460.0480.0500.0520.0540.0560.0580.0600.0
2006 2007 2008 2009 2010 2011
thsd
tons
Graph 5. Sales of Cheese in Russia
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The growing trend of the sales is obvious. A slight downturn in 2008 did not
serve as a threat for the sales to have further growth.
PRICES
One of the most important events of 2007 was moderate growth of retail prices
for cheese (8%), which was due to high prices for milk. In addition, the growing
purchasing power of the population, particularly of high-income groups, in cities such
as Moscow and St. Petersburg, provokes strong growth of premium cheese segment,
which also leads to a general rise in prices.
In premium segment in 2007, where prices are higher than 300 rubles (or circa
USD 10) per kilogram, a significant increase in value terms (by 25%) were observed.
Price increase did not reduce demand, particularly in premium segment. Wealthy
Russian consumers are willing to pay for quality. In addition, this consumer group is
less sensitive to small fluctuations in prices.
According to BusinesStat estimates, in 2006-2010 the sales volume of cheese in
Russia was steadily increasing. In 2007, even the price hike caused by the rising prices
for milk did not stop the market growth.
In 2006-2010, the prices for cheese went up by 78%. In 2010, the average price for
rennet cheese amounted to 175.6 rubles (circa USD 6) per kilo, and processed cheese
cost equaled on the average 67.8 rubles (circa USD 2) per kilo.
In 2010, unit prices saw 9% growth. The expansion of Belarusian cheese manufacturers
following the removal of trade barriers between Russia, Belarus and Kazakhstan
created opportunities for retailers not to increase prices in the low and middle price
segments. The appreciation of the local currency against the euro made it possible for
importers to avoid further price increases. However the unit price growth is set to be
stronger in 2011 than in 2010 as consumers want to taste new cheese brands and
flavors, which are usually more expensive than regular and popular yellow traditional
cheeses.
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Prices in Russia dropped 2.8% for oils and fats (down by 1.4% in the EU), and
1.9% for dairy products, cheese and eggs (up 0.7%). According to the latest (July 2012)
data the average price of fresh cheese in Russia per 1 kilo amounts up to USD 9.281.
IMPORTS
It is difficult for Russian cheese products to compete with imports in terms of
the price to quality ratio. According to Intesco Research Group, the cheese market,
including products from Belarus stood at 763,000 tons in 2010. The market showed
growth of 7% while domestic production increased by just 2%. As a result, the market
share of imported cheese reached an all time high of 46%.
In 2005-2010, the import volume in the Russian market increased by 100
thousand tons, i.e. from 421 thousand tons to 433 thousand tons. Since 2011 the
situation has changed and the share of the domestic production on the local market
will begin to increase. The imported cheese will lose the market power due to the
protectionist policy of the Russian government toward the domestic manufacturers.
Among the countries that produce and supply cheese in the Russian Federation,
the largest share in supplies in kind and in value terms is for Ukraine and Germany —
22% and 21% respectively. It should be noted, that the share of Finland is also very
high — 12% in physical and 10% in value terms, and Lithuania — 11% and 10%.
The main Russian companies importing cheese are LLC “Valio”, LLC “Mils Stuff”,
and LLC “Solis”. Their share in the total volume of imports of production in kind is
equal to 14%, 9% and 8%, and in value terms – 12%, 9% and 8%.
In the structure of supply of cheese by regions of the Russian Federation, the
largest share belongs to Moscow — 50% in kind and 52% in value terms. The next
largest share belongs to St. Petersburg — 29% in kind and 27% in value terms.
The imports of premium young cheeses are characterized by large amounts of
cheeses such as mozzarella: the proportion engaged in these cheeses in the total
imports of young cheeses in 2009 in kind amounted to 76%. At the same time, ricotta
and mascarpone had about 19% and 3%, respectively. A large proportion of deliveries
of mozzarella on the Russian market can be justified not by active consumer demand
in the retail market, but by the use of this type of cheese in the segment HoReCa. To a
1 For more detailed information, see Figure 1 in Annex.
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greater extent this includes pizza-oriented work with pizza delivery and networks of
pizzerias, to a lesser extent, restaurants and cafes, not performing delivery services.
This allows for a quite clear division of these consumers into two groups.
The first one includes food service establishments for which on the first place are the
quality of ingredients and of the final product, as well as its authenticity and original
recipe. The second one includes those restaurants, and more pizzerias and cafes,
which in the first place try to minimize raw material costs of the final product.
Thus, the share of young cheese, part of the retail market of premium cheeses,
is considerably less than the volume of imports of this type of cheese, and makes for a
rough estimate of 15%.
Among the countries producing and supplying young cheese in the premium
segment in Russia, the largest share of deliveries in kind in 2009, was occupied by
Argentina and Germany — 26.5% and 24%. It should be noted that large shipments
accounted for Denmark — 20.9% and Italy — 18%. In value terms, the main suppliers
were the countries listed above: the share of Germany was 27.9%, of Italy — 21.6%, of
Argentina — 20.6% and of Denmark — 18.2%. Despite the fact that the historical
homeland of young cheeses (mozzarella, ricotta and mascarpone occupying 98% of
total imports of young cheeses) is Italy, in recent years, most deliveries come from
Argentina. One explanation of this fact is the high cost of Italian mozzarella. For
example, when importing, the average cost of one ton of Argentine mozzarella is USD
2.7 thousand against USD 4.2 thousand for the Italian. The same role was played by
the fact that in 2008 it became widely known that in Italy dioxin-contaminated cheese
was being sold, which brought the temporary ban on Italian mozzarella from the EC
supplies. Dioxin is a highly poisonous substance, which has diverse physiological
activity. Dioxin has mutagenic and carcinogenic effects and can accumulate in
organisms. Experts believed that the presence of dioxin in buffalo milk and cheese was
an indicator of poor environmental conditions in the region of Campania, where the
problem with the processing of garbage is not still solved.
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EXPORTS
Over 30 countries exported cheese to Russia in January-November, 2011.
According to Intesco Research Group, Belarus, Germany, Ukraine and Finland were the
main suppliers. Belarus was the key importer of dairy products into Russia. Production
costs in Belarus are much lower, and it is difficult for other suppliers to compete with
them.
Russia exports cheese, but export volume is by several times smaller in
comparison to import volume; in 2011 export volume saw 8.8% year-to-year decline.
In 2011 Russian manufacturers exported 8445 tons of cheese for the total amount of
USD 32.2 million. Unlike import, export is mainly driven by processed cheeses — 91%
of export volume, 7674.96 tons or USD 29.8 million. Second and third large segments
in export volume are semi-hard and unripe cheeses respectively with 4% and 2%. It
should be mentioned that share of export in general foreign trade of Russia is very
small.
Obvious leader of Russian cheese export is “Hochland” with 39% in volume.
This German company with production facilities in Russia is the leader of processed
cheeses and exports 41% of its production volume. Same company heads export of
unripe cheeses with 48% of its volume.
Second important exporter of cheeses from Russia is another foreign company
with production facilities in Russia — “Laktalis Istra” with 18% of export volume.
Third and fourth places in export rating belong to Russian manufacturers — cheese
plants “Lukhovsky” and “Yantar” with 10% and 6% of export volume respectively.
These companies also specialize in processed cheeses.
The said four companies are mainly driving production of processed cheeses in
Russia, so they also control about 78% of processed cheese export from Russia.
About 30 countries were buying Russian cheeses in 2011. Top ten countries of course
include former Soviet Republics. The most important buyer of Russian cheeses was
Ukraine with 41% of export volume followed by Turkmenistan with 29% and
Azerbaijan with 10%.
Most expensive export categories, according to customs statistics, are soft and
blue cheeses with the average export prices of 8.9 USD/kg and 4.9 USD/kg
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respectively. Meanwhile the cheapest categories are semi-hard and unripe cheeses.
Leader in exports is processed cheese. It has the average export price of 3.9 USD/kg.
It can be stated that Russian cheese market is promising and vibrant. Demand
for semi-hard, hard and processed cheeses is well-set, production increases in volume.
Demand for elite cheeses is also growing as consumers’ purchasing power improves.
PROSPECTS
The cheese category is expected to grow by 6% annually up to 2016 to reach a
value of RUB 293 billion or USD 9.72 billion.
Experts underscore the significant market growth. In the coming years, growth
of the Russian cheese market will be 40% in value terms, outrunning expected growth
in such regions as North America and Western Europe.
According to experts, Russia will accelerate the transition from simple
commodity markets, where price is the major factor for consumers, to brand markets,
where the marketability brand is determined by proposed added value.
Experts also predict a substantial increase in the segment of healthy lifestyle
products, especially — products containing probiotics and having lowered fat. This
trend will be developed by growing demand by health-conscious consumers in such big
cities as Moscow and St. Petersburg. But in the medium terms sales of “healthy”
products will be quite small in contrast with sales of ordinary cheeses.
Strong competition in the economy segment will continue pushing domestic
manufacturers to diversify their product offers. In the short term, the cheese category
will witness new soft cheese launches. The assortment of products offered in this
category is expected to increase significantly. The consumption of premium cheese
brands is expected to grow during the forecast period due to the increasing presence
of expensive cheese brands in the regions. Large manufacturers and importers of
premium brands will face increased competition in the regions in which they are
present as they seek opportunities to widen their coverage. The development of the
supermarkets/hypermarkets channel in the regions will support such opportunities.
The forecast period is expected to witness a constant value CAGR of 6%, compared
with a 17% CAGR over the review period. However a faster than in historic period
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growth in volume terms suggests that the slowdown in value growth is primarily due to
unit price rises easing. Alongside with approaching saturation in volume consumption
per capita, the prices will grow slower, as manufacturers and distributors will face
tighter competition and try to hold prices competitively low. Cheeses will see changes
in structure of demand: consumers are going to switch toward new types of cheeses,
thus value share of traditionally popular since Soviet period hard yellow cheeses will
shrink. Growing demand for premium cheese may serve as an opportunity for further
category development. However, this segment is only likely to see a strengthening
presence if the Russian economy registers stable development.
Packaged hard cheese is expected to see a 13% constant value CAGR over the
forecast period. Packaged products are preferred by chained retailers, which are
gaining share in cheese sales. At the same time, the number of Russian consumers
opting for smaller-sized but conveniently packaged products is increasing. The soft
cheese category is also expected to see relatively strong growth over the forecast
period, with a 10% constant value CAGR. The efforts of many domestic manufacturers
and importers launching new products in combination with a relatively low base will
support this development.
In the forecast period the average unit price of cheese is expected to rise at a
CAGR of 2%.
The table below shows the forecast sales of cheese for Russia in terms of
volume.
Table 17. Forecast Sales of Cheese by Category in Russia thsd tons
Production Years
2012 2013 2014 2015 2016 Processed Cheese 154.4 160.5 166.6 171.8 176.9
Spreadable Processed Cheese 116.4 121.3 126.3 130.4 134.5 Unspreadable Processed Cheese 38.0 39.1 40.3 41.4 42.3
Unprocessed Cheese 472.4 496.9 520.1 538.5 553.8 Hard Cheese 382.7 399.6 415.3 427.5 438.3 Soft Cheese 89.6 97.3 104.7 111.0 115.6
Spreadable Unprocessed Cheese — — — — — Cheese 626.7 657.4 686.7 710.3 730.7
Source: www.portal.euromonitor.com
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The 4-year lag of time during 2012-2016 is predicted to increase the sales of
cheese by 17%. Processed cheese sales will increase by 15%, and unprocessed cheese
— by 17%.
Increased competition in the economy segment will restrict significant price increases
in the cheese category. Milk commodity prices saw a significant increase at the end of
the review period but are not expected to see very strong growth during the forecast
period.
Small domestic manufacturers are expected to develop in one of two ways.
They are either likely to be acquired by large Federal-scale manufacturers or they will
diversify their product lines, invest in improving their manufacturing efficiency and
engage in local brand launches. Marketing expenses will increase strongly as support
of brands is highly needed when competition is strengthening. The production of
private label cheese for the largest retailers is likely to be a good option for small
manufacturers that do not have access to large financial resources or the capabilities
to launch their own brands. The consumer acceptance of private labels is likely to grow
in the forecast period with positive experience of consumers in other categories.
Foodservice sales are expected to grow during the forecast period. Many
manufacturers may consider this channel to represent a good opportunity to increase
sales. Developing a presence in this channel will lead manufacturers to change their
approach towards promotion and distribution.
REFERENCES
www.portal.euromonitor.com
http://www.foreign-trade.com/reference/hscode.cfm?code=0406
http://www.prweb.com/releases/cheese_cheddar/organic_artisan/prweb3489924.htm
http://www.researchandmarkets.com/reports/544591/analyzing_the_global_cheese_market
http://www.thedairysite.com/news/37329/cheese-market-continues-to-grow-in-russia
http://www.numbeo.com/food-prices/country_result.jsp?country=Russia
http://rbth.ru/articles/2012/07/25/food_prices_in_russia_rise_nearly_4_times_faster_than_in_eu_in_june__16645.html
http://businesstat.com/world/surveys/food_and_beverages/dairy_products/cheese/
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http://russianmarketreport.com/research/market_research/?analitic_id=25
http://www.foodmarket.spb.ru/eng/archive.php?year=2012&article=831§ion=4
http://en.wikipedia.org/wiki/Cheese
http://cheese.wikia.com/wiki/Cheese
http://www.smellycheese.com.au/go/smelly-cheese-shop/cheese-facts
http://www.numbeo.com/food-prices/country_result.jsp?country=Russia
http://coinmill.com/RUB_USD.html#USD=1
International Dairy Magazine
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GEORGIAN CHEESE MARKET OVERVIEW
EXECUTIVE SUMMARY
Georgia is known as a homeland of wine while production of cheese counts 28
century history. There are many countries in the world that consume large amounts of
cheese but none of them could possibly rival with Georgia in the extreme devotion
towards this product. The Georgians eat cheese not as a supplement but as the
inseparable part of the main course.
It is important to mention that Georgia is the first among the EU neighborhood
countries to take important step towards protecting its local food and beverages from
being copied in other countries. The Georgians consider this process to be an
intellectual property right which indicates a geographical area and is used to designate
the goods originating in that geographical area, specific quality, reputation, or other
characteristics of which are attributable to that geographical area and production or
processing or preparation of which takes place in the geographical area. National
Intellectual Property Center of Georgia in cooperation with Ministry of Agriculture of
Georgia (MOA) has now registered as many as 37 varieties of local products under a
law of Georgia on Appellations of Origin and Geographical Indications of Goods. In the
list of local products Sulguni cheese has already been registered as a local Georgian
product. Sulguni is a pickled Georgian cheese from Samegrelo region. Sulguni may be
produced from normalized milk of cow, buffalo, sheep or goat, or a mix of these milks.
It has a sour, moderately salty flavor, a dimpled texture, and an elastic consistency;
these attributes are the result of the process used, as is the source of its moniker
"pickle cheese". Its color ranges from white to pale yellow. According to the 1970s
sources, Sulguni accounted for around 27% of cheese production in Georgia. It was the
3rd most popular pickled cheese in the Soviet Union, with 16.5% share in 1987 (after
Bryndza and Ossetian cheese).
DOMESTIC PRODUCTION VOLUMES
With its lush pastures, Georgia produces excellent dairy products. Therefore,
pungent cheeses, cheeses with herbs and creamy yogurt are in abundance. In the
provinces of Samegrelo and Guria, cheeses often are used as a substitute for butter.
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Some say that the longevity of the Georgians is directly related to their yogurt
consumption. Dozens of varieties of cheese are produced in Georgia. For example,
Sulguni (Suluguni), Imeruli, Inguli, Ossetian cheese, Gadazelili, Gouda, Kobis Kveli,
Tushuri, Parmesan, Mozzarella, etc. Nevertheless, the most popular types of cheese
are Sulguni and Imeruli, which belong to artisanal products in most cases. These two
are followed by a number of Georgian types of cheese which vary by amount of salt
and their softness.
Not only the taste scale, but also the ways of making Georgian cheeses differ
from the European ones. If in European kitchens the varieties of cheeses are consumed
for having a snack, or just for a dessert table, the Georgian cuisine uses them in the
preparation of hot meals. In Georgian cuisine the cheese can be boiled in milk or
tenderized, roasted on a spit in a frying pan, baked in pastry, soaked, pounded,
flavored with oil and spices. Almost every region in Georgia boasts its own variety of
cheese: Samegrelo is famous for Sulguni, Imereti offers Imeruli (curd cheese made
from cow milk) and Gadazelili, a very soft cheese with mint; and Tusheti prefers
Gouda, a sheep cheese.
Spreadable unprocessed cheese is actually the smallest product range of
cheese and in conditions of a slight economic recovery consumers show particular
interest towards this type of cheese. Unpackaged cheese is strongly prioritized on the
Georgian market and affects sales of packaged cheese dramatically. Nevertheless, the
growth rate of the yet undeveloped category of spreadable unprocessed cheese was
quite visible over the review period, so it has good prospective growth for the forecast
period.
The production volumes of cheese in Georgia are declining. The table below shows
that.
Table 18. Cheese Production Volumes in Georgia thsd tons
2006 2007 2008 2009 2010 2011 0.1 0.1 0.1 0.0 0.0 0.0
Source: www.portal.euromonitor.com
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Cheese production volumes have remained stable since 2009. Obviously, the
impact of the crisis has immensely impacted on this sphere of Georgian production.
Consequently, the per capita cheese production is also close to zero level.
The table below represents percentage value breakdowns of spreadable processed
cheeses by type.
Table 19. Spreadable Processed Cheese by Type in Georgia: % Value Breakdown % retail value rsp
Cheese Type Years
2006 2007 2008 2009 2010 2011 Cream Cheese 4.0 5.0 7.0 7.0 6.5 6.0 Reconstituted Cheese 96.0 95.0 93.0 93.0 93.5 94.0 TOTAL 100.0 100.0 100.0 100.0 100.0 100.0
Source: www.portal.euromonitor.com
The share of reconstituted cheese dominates over the one of cream cheese.
Nevertheless, the share of cream cheeses has a declining trend.
KEY MARKET TRENDS
The category trend towards artisanal cheese being steadily present and owning
high shares is expected to continue over the forecast period. Nevertheless, the
Georgian manufacturer Eco-Food Ltd is starting to invest in manufacturing of packaged
and unpackaged cheese. The domination of the category is expected to be continued
by Georgian manufacturers, but manufacturing localization by several big players in
dairy products is expected to take place. Also, Valio’s slow but steady growth makes it
assumable that it will remain the leader amongst international brands of cheese in
Georgia. Increased popularity of fast lunches at offices will also raise the popularity of
soft packaged cheese from Valio and some brands of unprocessed spreadable cheese.
Due to fast and sudden growth of milk’s price in Georgia at the end of 2010 and the
beginning of 2011, the rate of cheese’s performance in value terms is evaluated higher
compared to the prediction of the 2011 edition.
Constant value CAGR of the review period appears to be almost twice higher
compared to the one of the forecast period. There were several reasons for such a
difference between the review period and forecast period growth rates. The revenue
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service of Georgia (tax police) has strengthened measures against illicit trade of all
kinds of products, including cheese. Besides, the growing welfare of society lets people
switch to more expensive products and finally, to increase consumption. The
inflationary increase of prices also affected the CAGR of the review period. The
forecast period is expected to be calmer in terms of growth as no dramatic upturns or
downturns are expected in consumption. The prices for cheese will be linked to milk
prices directly. No legislative changes are expected for dairy products. As cheese
remains a very basic product for Georgian consumers, there are no distinct threats to
growth of the cheese category in Georgia. The only obstacle to growth could be an
economic downturn, which would force more manufacturers of cheese to use cheap
milk powders in production to keep prices affordable to consumers.
In case of stable prices for milk, the prices will remain stable, facing growth in
constant terms less than 1% annually. The demand is expected to be stably growing at
low rates and consumers are not expected to switch to purchases of some dramatically
highly expensive brands. The removal of artisanal cheese form the category will be a
very slow trend which will not affect the category dramatically in terms of price
increase.
The sales of cheese will be gradually moving to supermarkets and
hypermarkets. The growth will be slight, as the packaged cheese will not be taking over
fast enough to cause extreme changes in distribution channels. Consumers will also be
giving up purchases in open markets, prioritizing small independent grocers instead.
Open markets will lose ground slowly as they will be considered more and more
inconvenient and unhygienic compared to other channels of retailing.
The biggest and most important plan has been announced by Eco-Food, which
is launching a factory where traditional Georgian cheese will be produced. The range
of products will be presented in both packaged and unpackaged forms. As the
company announced, to keep the prices competitive compared with small producers
of artisanal cheese, cheese produced by it will be unpackaged or packaged without any
wise design solution. Eco-Food’s decision is expected to be copied by Sante GMT as
well. There is a big possibility that these two companies will be taking over the
category and suppressing small producers of artisanal Georgian cheese.
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There is no significant success expected for slightly modernized international
branded products in Georgia in 2011. The most successful launches are expected to be
performed by Eco-Food by the end of 2011, which will be competing with small
producers of artisanal Georgian cheese.
FOOD RETAIL SECTOR AND THE LARGEST CHEESE PRODUCERS
The largest sales of cheese take part in independent small grocers (about 40%).
This channel is followed by other grocery retailers, which assume the form of bazaars
mostly. The smallest share is accounted for by supermarkets/hypermarkets.
The table below represents the sales of cheese by distribution format.
Table 20. Sales of Cheese by Distribution Format in Georgia % retail value rsp
Distribution Format Years
2006 2007 2008 2009 2010 2011 Store-Based Retailing 100.0 100.0 100.0 100.0 100.0 100.0
*Grocery Retailers 100.0 100.0 100.0 100.0 100.0 100.0 **Supermarkets/Hypermarkets 11.6 18.8 22.1 24.3 24.7 25.0
**Discounters — — — — — — **Small Grocery Retailers 21.4 25.2 36.9 38.8 40.1 41.0
***Convenience Stores 1.4 1.2 0.9 0.8 0.9 1.2 ***Independent Small Grocers 20.0 24.0 36.0 38.0 39.2 39.8
***Forecourt Retailers — — — — — — **Other Grocery Retailers 67.0 56.0 41.0 37.0 35.2 34.0
*Non-Grocery Retailers — — — — — — **Health and Beauty Retailers — — — — — —
**Other Non-Grocery Retailers — — — — — — Non-Store Retailing — — — — — —
*Vending — — — — — — *Homeshopping — — — — — —
*Internet Retailing — — — — — — *Direct Selling — — — — — —
TOTAL 100.0 100.0 100.0 100.0 100.0 100.0 Source: www.portal.euromonitor.com
The table below represents the company shares occupied in cheese production in
Georgia.
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Table 21. Cheese Company Shares in Georgia % retail value rsp
Company Years
2006 2007 2008 2009 2010 Valio Oy 1.8 1.8 2.2 2.3 2.5 Kiziki Ltd 1.7 1.6 1.7 1.8 1.6 Yantar AOZT 1.0 1.0 1.0 1.0 0.9 RZPC OAO 0.7 0.7 0.7 0.7 0.8 Bayernland eG 0.6 0.6 0.7 0.7 0.8 Hofmeister GmbH 0.5 0.5 0.5 0.6 0.7 Sante GMT Ltd 0.5 0.5 0.6 0.7 0.7 SM Spomlek 0.8 0.9 0.6 0.5 0.5 Ckcharo Ltd 2.1 1.8 1.8 1.9 — Hochland AG 0.8 0.7 0.7 0.9 — Zott GmbH & Co KG 0.1 0.4 0.2 0.1 — Artisanal 69.0 67.6 69.5 69.2 73.1 Others 20.3 21.8 19.8 19.7 18.4 TOTAL 100.0 100.0 100.0 100.0 100.0
Source: www.portal.euromonitor.com
COMPETITION FIELD
In 2010 the sales were led by artisanal producers of cheese solely, owning 73%
share of the category. This huge share resulted from the specific taste of Georgian
consumers and also comparably lower prices for unpackaged cheese, which aroused
slight increase of share of this type of cheese in a critical period in the economy of
Georgia.
Artisanal producers of cheese managed to expand their share of the category
by approximately four percentage points. Consumers were too hard up for
experiments in buying branded cheese products other than traditional ones and,
therefore, prioritized traditional cheese bought mostly in bazaars and independent
small grocers. The importers are not very optimistic about the prosperity of
international cheese brands and therefore no strong marketing activities are launched
by them.
The category is purely dominated by local artisanal producers which appear to
be specialists of manufacturing the right-tasting cheese for Georgian consumers. The
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international brands mostly suit the gourmands of foreign brands and foreigners who
keep them alive on the market.
The category of cheese is quite conservative. The best performers, artisanal producers
of cheese, do not tend to change their products and introduce some extra flavors or
launch some packaging as it would raise the price, for which the average Georgian
consumer is not ready yet.
No packaging innovation or active advertising measures have been spotted by
the end of the review period, as the ground for strong investments in this category is
not mature enough.
Mostly economy artisanal products are leading the sales, as cheese remains
one of the major products for Georgians, both as a basic product and as part of some
premium cuisine element. In both cases, artisanal cheese is leading. Standard-priced,
packaged brands are mostly for people who are gourmands of internationally branded
cheese, or foreigners who do not enjoy the traditional taste of Georgian cheese.
Standard packaged brands are also becoming popular with food logistics services for
offices, as these products are more convenient and hygienic to be consumed during
quick lunches at offices. The premium segment can be described as extremely narrow
in Georgia due to the absence of sufficiently well-off consumers.
CONSUMER PREFERENCES
The table below shows the sales of cheese in Georgia by category. It will enable to find out the consumer preferences in Georgia
Table 22. Sales of Cheese by Category in Georgia thsd tons
Production Years
2006 2007 2008 2009 2010 2011 Processed Cheese 6.0 6.3 6.4 6.3 6.3 6.3
Spreadable Processed Cheese 3.9 4.2 4.2 4.2 4.2 4.2 Unspreadable Processed Cheese 2.1 2.1 2.1 2.1 2.1 2.1
Unprocessed Cheese 36.7 36.8 37.8 37.5 37.6 38.1 Hard Cheese 5.7 5.8 5.9 5.8 5.9 5.9 Soft Cheese 30.1 30.1 30.0 29.7 29.8 30.0
Spreadable Unprocessed Cheese 0.9 0.9 2.0 1.9 2.0 2.2 Cheese 42.7 43.1 44.2 43.8 43.9 44.4
Source: www.portal.euromonitor.com
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Unprocessed cheese is more preferable by the Georgians than processed one. Among
unprocessed cheese the most preferable cheese is soft one. Skimming over the data
above, it becomes clear that the sales of cheese are growing moderately. The trend of
growth is obvious in the graph below.
Source: www.portal.euromonitor.com
Sales of spreadable processed cheese are led by reconstituted cheese, which is
expected to perform 94% of overall sales of spreadable processed cheese.
Reconstituted cheese is widely used in cooking for the preparation of breakfasts, pizza
and a wide range of other dishes.
PRICES
The production of artisanal cheese prospered in 2010. Such a steadily fixed
position of artisanal cheese on the Georgian market is conditioned by several reasons.
Only the artisanal producers of cheese manage to satisfy the demands of Georgian
consumers and only that kind of cheese can be used in Georgian traditional cuisine to
achieve the original taste of traditional dishes. Besides, the prices are much lower
compared to imported brands and as cheese remains one of the major products after
bread for Georgian consumers, the category is quite large and the competition
between artisanal producers is very high, which keeps prices lower.
The unit price growth for cheese fits that of most milk products, expected to reach
about 8% annually. The slightly increased demand for comparably more expensive
cheese also plays its role in the price increase. Unit price of locally produced cheese
directly depends on the price of milk. As the artisanal producers do not have means for
41.5
42.0
42.5
43.0
43.5
44.0
44.5
45.0
2006 2007 2008 2009 2010 2011
thsd
tons
Graph 6. Sales of Cheese in Georgia
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storage in most cases, they are affected by prices for commodities immediately, as
soon as changes in price take part.
According to latest price updates (August, 2012), the average price for a kilo of
fresh cheese in Georgia is about USD 4.81. The average price for a kilo of Imeretian
cheese in Tbilisi is 6 lari (circa USD 3.69). It becomes cheaper in summer when milk
yields are higher2.
EXTERNAL TRADE
The graph below gives a clear view that the import volumes of cheese and
curds in Georgia dominate over the exported cheese and curds despite the exports of
this commodity group have risen swiftly since 2010.
Source: www.geostat.ge
Table 23. Cheese and Curds in Georgia thsd USD
2006 2007 2008 2009 2010 2011 Exports 2.0 54.5 0.8 22.1 205.9 220.2 Imports 2434.4 2890.9 4008.9 2172.5 3467.6 4325.8
Source: www.geostat.ge
The table above shows the foreign trade of cheese and curds in Georgia. The
exports of this commodity group have increased rapidly in 2010 (by almost 9.3 times).
2 For more detailed information, see Figure 2 in Annex.
0.0500.0
1000.01500.02000.02500.03000.03500.04000.04500.05000.0
2006 2007 2008 2009 2010 2011
thsd
USD
Graph 7. Foreign Trade of Cheese and Curds in Georgia
Exports
Imports
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The impact of crisis on imports of cheese and curds was huge in 2009 when the
imports rapidly decreased by 45.8%. The increase is noticeable for the following years.
PROSPECTS
Taking into consideration the recent data as well as the time series of cheese
sales in Georgia for 2006-2011, it is calculated that overall cheese sales will increase
year by year for the further 5 years. Cheese sales in Georgia will increase by 2.4% in
average during 2012-2016. The sales volumes of processed cheese are projected to
have 0.1 thousand tons of increase yearly. Spreadable processed cheese will go on
dominating over the unspreadable one. Unprocessed cheese sales volumes are going
to increase in average for a thousand tons for the further 5 years. In this category, soft
cheese sales volumes will dominate over the rest in this category.
Table 24. Forecast Sales of Cheese by Category in Georgia thsd tons
Production Years
2012 2013 2014 2015 2016 Processed Cheese 6.4 6.5 6.6 6.7 6.8
Spreadable Processed Cheese 4.3 4.3 4.4 4.4 4.5 Unspreadable Processed Cheese 2.1 2.2 2.2 2.3 2.3
Unprocessed Cheese 38.8 39.7 40.9 42.2 43.0 Hard Cheese 6.0 6.1 6.3 6.4 6.6 Soft Cheese 30.5 31.2 32.1 33.1 33.7
Spreadable Unprocessed Cheese 2.3 2.4 2.5 2.7 2.7 Cheese 45.2 46.2 47.5 48.9 49.8
Source: www.portal.euromonitor.com
REFERENCES
www.portal.euromonitor.com
http://helengraves.co.uk/tag/georgian-cheese/
http://www.georgianjournal.ge/index.php/economy/8995-nobody-eats-as-much-cheese-as-georgians#
http://www.colchischeese.com/products.html
http://en.wikipedia.org/wiki/Protected_Geographical_Indications_for_the_Georgian_products
http://www.aboutgeorgia.ge/cuisine/cheese.html
http://georgian-cuisine.gurman.ge/
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http://en.wikipedia.org/wiki/Sulguni
http://georgiaabout.wordpress.com/tag/georgian-imeretian-cheese/
http://heliski.travel/caucasus/georgian-hospitality/
http://www.numbeo.com/food-prices/country_result.jsp?country=Georgia
www.geostat.ge
http://coinmill.com/GEL_USD.html#USD=1
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EUROPEAN CHEESE MARKET OVERVIEW
EXECUTIVE SUMMARY
Cheese has traditionally been considered the preferred outlet for milk from the
European Union (EU) after local fresh-milk requirements have been satisfied. The EU
cheese market is the largest in the world, and despite very high per capita
consumption levels, growth has remained attractive and stable.
The high production costs of milk in most of the EU rule out a competitive role
in supplying the world’s net importing markets with low-priced dairy commodities.
Cheese has therefore provided much better export opportunities than any other dairy
product, as the willingness to pay for quality European cheese has always been high,
and the impact of higher raw-material costs is less problematic. As a consequence, the
share of EU milk that is processed into cheese increased from 43 percent to 45 per
cent between 2001 and 2010.
However, the cheese market has changed in recent years due to developments
in the EU and to global trends. Competition within the EU market is heating up, as the
market has become more saturated, the traditionally higher premium for cheese
versus other dairy products has eroded, and the commodity segment of the cheese
market has become more volatile and unpredictable.
Most of the growth on the global market will be in milk powders and butter oil
rather than cheese, as the needs of developing dairy markets are more geared towards
these products. As a result, cheese specialists are reconsidering their business models
and trying to incorporate new growth areas either in new geographies or in value-
adding services. These developments raise the question of whether cheese should
remain the preferred outlet for new milk produced in the EU after 2015, when the
termination of the quota system may stimulate growth of milk production in selected
regions in Western Europe.
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MARKET OVERVIEW
The production of fresh cows’ milk is dominant (93%) among the dairy
production sectors. 5% of the whole production belongs to cheese production.
The pie chart below represents the percentage breakdown of the dairy production in
Europe for 2011.
Source: www.portal.euromonitor.com
The EU cheese market is the largest in the world, and despite very high per
capita consumption levels, growth has remained attractive and stable.
The EU cheese market is changing due to developments in the EU dairy market
and to global trends. Most of the growth on the global dairy market is in milk powders
and butter oil rather than cheese. The returns to be made on producing powders and
butter rose faster than those for commodity cheeses.
As a result, cheese specialists are reconsidering their business models and
trying to incorporate new growth areas either in new geographies or in value-adding
services.
Growth opportunities for cheese in markets outside the EU are interesting, but
a dedicated country-by-country marketing effort will also be required to provide a
stronger competitive edge against exports from more efficient milk production
regions.
1% 5% 0%
1%
93%
Pie Chart 3. Dairy Production in Europe for 2011
Production of Butter & Ghee
Production of Cheese
Production of Dried Cows' Milk
Production of Evaporated Milk
Production of Fresh Cows' Milk
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The EU cheese market is changing, forcing cheese suppliers to rethink their
business models and explore new opportunities for growth. The main drivers behind
these changes are falling growth rates in the EU, more pressure on margins because of
higher revenues in powder and butter products, and volatility in commodity cheese
markets. With the prospect of growth in milk production after the termination of EU
milk quotas in 2015, suppliers need to find new ways to deal with the new milk
produced. In a mature, competitive and increasingly volatile cheese market,
companies have six strategic options for targeting further growth and profitability.
DRIVERS OF CHANGE: EU GROWTH RATES FALLING
The EU cheese market is still growing, albeit at a declining rate. Average annual
growth between 2000 and 2005 was 1.8% and dropped to 1.1% between 2005 and
2010. Annual growth in the period between 2011 and 2015 is forecast to be 0.6%.
Per capita consumption growth accounts for 0.4% of annual growth, with the balance
the result of population growth. Growth varies between the different EU member
states. Growth rates above two per cent are expected in Ireland, Poland and Hungary.
Growth rates between one per cent and two per cent are expected in the UK, Sweden,
Spain, Greece and most of the new EU member states. Growth rates in large markets
like France and Germany are expected to remain close to zero.
Although demand for cheese as an ingredient in ready-made food products is slightly
more sensitive to changes in economic sentiment, growth across the different market
segments — industrial, catering and retail — is currently stable.
Over the past decade, the main change in EU cheese demand occurred in the
use of cheese by households. Retail purchases, in terms of kilogram per household,
grew in line with overall market growth, but the share of cheese purchases used for
cooking — sauces, toppings and meal ingredients — grew strongly at the expense of
more traditional uses, such as cheese on a sandwich or as part of a cheese platter.
Despite the overall stability of the EU cheese market, in terms of shifts across
categories, the EU market remains a collection of different regional markets with
different cheese segmentation profiles (see Figure 1).
The UK comes close to the US consumption profile where catering and
industrial ingredients account for a relatively large share of consumption compared to
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retail purchases. Germany also has a sizeable proportion of ingredient use, as it is the
preferred location for a number of large European pizza manufacturers. In countries
like Italy, Spain, Poland and France, most cheese is still purchased and consumed
through the retail channel.
In such a mature market one would expect a strong consolidation trend, but in-
market merger and acquisition (M&A) activity in the EU cheese industry has been
modest in recent years, and overall brand shares of the leading players have been
stable. Private-label shares throughout the EU have remained relatively stable as well,
at around 18% on average. The highest private-label shares are found in the cheese
categories of Cheddar, Gouda and Emmental. In the specialty cheese categories,
private-label shares are very low.
Most EU companies active in cheese have traditionally enjoyed stable and
above average returns. Returns for cheese and whey — even in the big commodity
cheeses such as Cheddar, Gouda and Emmental — were generally higher than those
for skim milk powder (SMP) and butter, meaning that cheese processors could easily
pay competitive prices for milk and still generate decent margins.
However, the traditional premium enjoyed by EU cheese makers disappeared
after 2007. Demand for milk powders grew faster than for cheese as expanding
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markets, such as China and Vietnam, rushed to supplement local milk supply with
imported products for recombining or ingredient use.
With existing capacity precluding the redirection of sufficient milk to faster-
growing product markets, the returns to be made on producing SMP and butter rose
faster than those for commodity cheeses such as Gouda or Cheddar, including the
whey powder (WP) revenues (see Figure 2). Commodity cheese specialists suddenly
found it harder to pay milk prices in line with market trends and still make a profit.
After the price support levels of SMP and butter were reduced following the EU
dairy market reform of 2002, the period 2002 to 2007 was characterized by multi-
product processors exploring other options to offload temporary surpluses of milk. In
addition to offering SMP and butter for intervention, they pushed bigger volumes of
commodity cheeses into the spot market by undercutting competitors’ prices, and sold
Cheddar curd from the UK or Gouda curd from Western Europe for making processed
cheese or Mozzarella. Under these market circumstances, manufacturers of Gouda,
Cheddar and Emmental which normally operate in different markets were competing
for the same clients in processed cheese and ingredient applications. As a result, the
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EU cheese market became more susceptible to general imbalances in the global
market triggered by supply or demand issues in products other than cheese. Not only
are cheese processors now facing increasing difficulties in generating higher returns
compared to SMP and butter, but they are also experiencing higher levels of price
volatility at the wholesale level.
In hard and semi-hard cheeses, the maturation process adds further complexity
and risk to the price volatility in the market. The maturation process takes from a few
weeks to over a year for cheeses like Gouda, Edam and Emmental. This creates a time
lag that makes a market-driven approach very difficult in these cheese types.
Particularly when the cheese has been produced in times of high raw-material prices,
but is not sold until a period in which the entire dairy market has turned around and
wholesale prices are low, margins come under pressure and can even become negative
(see Figure 3).
Between 2006 and 2008, a wave of cheese capacity expansions took place in
Mozzarella and other big commodity cheeses, with little or no investments in other
commodity products. This wave of investments came to a standstill after 2008, partly
because the capacity expansion was not yet fully utilized, partly because of the
financial crisis, but also because of the general notion that the world market needed
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more SMP and butter rather than more cheese. Comparative prices therefore started
to reflect these relative shortages within the dairy product portfolio.
With the termination of the quota system on the horizon, the preferred destination of
new milk becomes an interesting question. In countries such as Ireland, the
Netherlands, and Denmark and in selected regions in Germany and France, processors
can look forward to milk production increases of between 15% and 50%, which could
largely be achieved between 2015 and 2020. This implies that processors in these
regions — and especially the cooperatives — will have to make decisions on capacity
expansion sooner rather than later.
The growing global demand for SMP and butter does not imply that the EU
should entirely realign its growth ambitions and forget about cheese. Despite the fact
that production costs have risen in the more efficient export regions in the world, most
of the milk produced in the EU still cannot compete in the commodity areas of the
dairy market. However, higher value-added outlets for milk powders, such as the
infant milk formula market, where quality is at least as important as price, are now
within reach for new EU milk produced after 2015. At the very least, the options can be
distributed more evenly across the dairy portfolio.
STRATEGIES FOR CHEESE COMPANIES
The drivers of change may challenge companies active in the EU cheese sector to
revisit traditional business models and develop new strategies. In a mature,
competitive and increasingly volatile cheese market, companies basically have six
strategic options for targeting further growth and profitability.
• Consolidating market positions and increasing efficiency in operations and
marketing.
• Improving the level of added value in the retail market by developing unique
selling points through new traits in the product itself, supported by dedicated
marketing and, preferably, brands.
• Improving the added value in the retail market by offering secondary
processing and logistics services.
• Developing ingredient solutions for clients that use processed cheese in ready-
made food products such as pizzas, sandwiches, cheese snacks and sauces.
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• Creating more flexibility in the product portfolio in order to avoid having to ride
the highs and lows of the global market.
• Targeting growth in markets outside the EU through dedicated export
concepts.
CONSOLIDATING MARKET POSITIONS
Due to the maturity of the EU cheese market, the strategic focus of many
leading players is to consolidate current market positions by acquiring add-ons, and
then to rationalize these operations and marketing structures. However, consolidation
has been modest, and rationalization has mainly taken place at the factory level rather
than between companies, with the exception of Lactalis, which has consolidated its
number-one position in branded cheese by acquiring cheese brands in Italy, the UK,
Spain and Central and Eastern European countries. The market shares of the leading
EU cheese players are largely stable (see Figure 4). Private-label shares have gradually
increased in Western Europe, from 20.5% in 2002 to 22.5% in 2009, while staying very
low (around 2%) in the growing Central and Eastern European cheese markets.
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IMPROVING VALUE-ADD POTENTIAL IN RETAIL MARKET
In the last decade, most of the dominant players in the branded EU retail
market have focused their new product development on line extensions and packaging
innovations targeted at convenience. Nonetheless, there have been many examples of
successful new product launches in recent years.
Products targeted at satisfying snacking demands, such as cheese snacks
children can take to school, have been particularly successful. So have cheeses with a
link to the regions where they are produced such as products with Protected
Geographic Indications (PGI) or Protected Designations of Origin (PDO). Consumers are
willing to pay more for regionally produced specialty cheeses when they combine good
quality and taste with a strong marketing story. Specialty cheese stores use these
cheeses to distinguish their range from the large retailers. However, retailers also open
up shelf space for regional concepts.
These concepts may range from the ‘Buy British’ story developed by Tesco in
the UK to the small-scale farmhouse production of Comté by French dairy farmers in
the Jura region. Cheeses that have low fat levels without compromising too strongly on
flavor were also a success story. The big boom in low- fat cheeses seems to be over,
but the high content of saturated fats remains a weakness for conventional cheese.
The ambitions of Danish food regulators to tax cheese in line with other unhealthy
consumer products like alcohol and tobacco provides another argument that the high
fat levels in cheese make the product vulnerable to these initiatives. There is no reason
to expect revolutionary developments in cheese innovation since the EU cheese
market already offers a sophisticated and diverse range. As it appears that most
options to change the product itself have already been exhausted, most future
innovations will target the aspect of convenience by offering flexibility of utilization in
the kitchen or by introducing new formats and packaging to improve portability, thus
increasing the number of occasions when cheese can be consumed.
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DEVELOPING SECONDARY PROCESSING AND DEDICATED SERVICES FOR RETAILERS
As the process of cheese making — particularly for big commodity cheeses such
as Cheddar, Gouda, Edam and Emmental — has become standardized and cost-driven,
many companies have developed specialist business models for value creation in the
downstream part of the chain. These business models include warehousing and
maturation services for retailers and/or primary processors, logistic and packaging
services for retail customers and foodservice, and developing private-label concepts
and category management roles for retailers.
While these services are sometimes in the hands of primary cheese
manufacturers, most often these roles are further developed by companies that
started off as traders but adopted value- adding services to escape the low margins in
trade. Many manufacturers of the big commodity cheeses have been focusing on scale
and cost advantages in recent decades. By doing so, they have lost the flexibility to
service individual clients, which has opened up plenty of opportunities for smaller
companies. Especially in consolidated retail markets, it pays to set up dedicated cutting
and packing lines for single retail clients. The UK and the Netherlands provide many
examples of how these dedicated investments represent a strong guarantee for
continued business since the mutual dependence is high.
Cheese used as an ingredient in processed food products was one of the main
growth drivers of the EU cheese market in the 1990s. However, many cheese
manufacturers have long considered the cheese-ingredient market a secondary market
and have failed to recognize the opportunities that were obvious to many ingredient
specialists in the general food market. There is great value to be captured in offering
tailored solutions to large customers in food processing. This is a different proposition
than occasionally shipping big blocks of cheese to ingredient customers during times of
oversupply in the cheese market. The growth in this part of the cheese market during
the 1990s saw the emergence of smaller ingredient specialists that developed
dedicated ingredients solutions for their customers in pizzas, snacks and sauces.
Dedicated ingredient solutions include technologies such as extrusion, differentiated
melting points, different shapes and cheese powders. This category of ingredient
specialists consists largely of relatively small companies that have invested in the
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intellectual property that gives them a competitive edge in the cheese-ingredient
market.
CREATING FLEXIBILITY IN PRODUCT PORTFOLIO
The years 2008 and 2009 proved that when the EU market is in a surplus
situation and multi-product processors can use the commodity cheese market to
offload milk surpluses, it becomes very difficult for cheese specialists to retain their
margins, because their strength comes from processing efficiency and they lack
alternative outlets for their milk.
The ability to relieve some of the pressure by exporting milk outside the EU is
limited and there is therefore no escape from the trap of competing at ever-lower
prices, ultimately destroying everyone’s market. Given the high probability that the
global market will create similar imbalances in EU supply and demand from time to
time, especially after 2015, the only way to escape this situation is to create alternative
relief valves. These could include investing in processing capacity for alternative
products, using other processors’ production capacity for alternative products, setting
up joint balancing plants or discouraging production increases at the farm level.
This could be achieved for instance by a differentiated milk price system where
price A (usually higher) is paid for the milk required for the processor’s core cheese
business, while additional volumes are purchased at price B, the result of the value
derived from the company’s secondary markets. There is no simple solution to the
challenge of oversupply. The nature of the dairy market dictates that when there is
oversupply in one market it quickly creates oversupply in other dairy markets as well.
However, adding flexibility to the options to take the pressure off a processor’s core
market is the only solution which avoids having to push more cheese into an already
saturated market. This is of the utmost importance in cheese, where storability is
limited and costs of storage are high.
DEVELOPING EXPORT BUSINESS
EU cheese exports are still growing and are still benefitting from a high
perceived value of EU cheeses in importing markets. Russia remains crucial for the
supply and demand balance of EU cheese (see Figure 5).
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For example, in 2010, Russia single-handedly cleared the EU market of Gouda
and Gouda-like cheeses and left the EU value chain with very low inventory levels.
Russia may be the most important market for the EU in volume terms, but other
countries are more important in terms of the average price per kilogram of exported
product (see Figure 6).
Export markets for EU cheeses typically fall into several categories depending
on what the imported cheese is used for. Algeria, Egypt, Saudi Arabia and Japan mostly
import cheese for further processing, while Russia and Mexico typically import bulk
cheeses which are subsequently repackaged for retail and catering customers. The US
and Canada generally import specialty cheeses, which are commonly retail-ready.
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Competition for market share where cheese is mostly used for further processing
revolves mainly around price and is therefore similar to the competition in powders
and butter. It is legitimate to ask how much marketing effort in these markets is
justifiable given the EU’s lack of cost competitiveness in producing milk. Targeting
these markets in times of oversupply obviously makes sense, but the objective in these
market circumstances is essentially to sell ‘packed fats and proteins’, rather than
marketing cheese.
The share of imports has remained quite stable in most of the export destinations for
EU cheese (see Figure 7).
The biggest changes have occurred in the Middle East, where Egypt has become a
processing and redistribution hub. The country is still an important destination for EU
cheese — and also for US cheese. However, a large share is being processed and re-
exported to neighboring countries such as Saudi Arabia, Lebanon and the United Arab
Emirates. Egypt now holds total import shares in these countries of 38%, 29% and 17%,
respectively.
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The growth of milk production after the termination of the quota system in
2015 is likely to be the biggest strategic challenge for EU processors in the years to
come. Processors will have to decide which opportunity to take and then make
decisions about building new capacity. The expected annual growth rate of 0.6% in EU
cheese consumption still allows for a capacity increase of about 50000 tones or one
large-scale factory every year.
For further growth, however, processors in supply growth regions will have to
develop new cheese markets or prioritize other products. After having determined
how much new milk can be expected from their suppliers, individual processors will
have to decide which products this new milk will be used for based firstly on EU and
global market growth opportunities in cheese versus powder and butter, secondly on
individual company capabilities in processing efficiency, creating new markets,
customer access and marketing, and thirdly on careful consideration of the growth
ambitions, and capacity expansions of the competition.
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The last issue in particular will be critical for a smooth transition to the non-
quota era that starts in 2015. Clearly, a coordinated transition can be more easily
achieved in a region in which the industry is consolidated than in a region in which
many processors are going it alone.
Due to the low base level of consumption and the much higher population growth,
developing markets provide better opportunities for long-term growth in demand for
EU cheese than those of Western Europe.
There is little potential for local cheese production in most of the developing
markets since the growing need for milk supply for fresh products usually leaves little
room to set up an efficient cheese value chain. Additionally, the high cost of raw milk
relative to the cost of transporting cheese makes it difficult to compete against cheese
imports coming from more efficient production regions.
Price, quality and sustainability of supply are key success factors in import
markets for powder and butter. While these factors are also important for cheese,
most cheese import markets additionally demand a dedicated marketing approach
which focuses on the specific local consumer preferences, distribution structures and
client landscape. Through a dedicated effort towards local market characteristics, EU
cheese manufacturers such as Emmi and Tine have developed interesting markets
outside the EU. Several EU specialist cheese traders have developed interesting
positions in single countries by taking a widely available Gouda, Cheddar or Emmental
cheese and tailoring it to the regional needs in that particular market by developing a
brand, distinct packaging and an efficient route to market.
This may require dedicated investments in local distributor networks. Export
markets are more often used to offload EU surpluses in commodity cheeses. For
example, when addressing the needs of processed cheese makers throughout the
world, a matured block of Cheddar, Gouda or Emmental may not be the most cost-
competitive format to satisfy the customer’s requirement for fats and proteins.
Caseins or even filled cheese products are a format more suited to compete in those
markets where the price per kilogram of fat and protein is the main selling point.
EU cheese exports could benefit tremendously from a country-by-country
approach. Given the level of saturation in the domestic EU market, the ambitions in
terms of new cheese- processing capacity beyond 2015 and the better growth
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prospects outside the EU, investments in a dedicated export approach seem more than
worthwhile. Exports to Russia will remain crucial for the EU cheese market. Volume
growth opportunities will remain because rising Russian incomes are increasing cheese
consumption and Russia does not seem capable of boosting its own cheese supply.
Value growth opportunities are probably even better, as EU cheese is still largely
exported in bulk form, with most of the tailored cutting and packing taking place closer
to the consumer.
Exports to markets such as the Middle East, where most of the cheese is further
processed, could benefit from alternative cheese concepts that are more price-
competitive and still satisfy customers’ needs.
The developing cheese markets in Asia and Latin America require a dual
approach. Consumption growth is partly taking place in ingredients (i.e. cheese
solutions for pizza and burgers) while cheese consumption is also being driven by
affluent urban consumers who are adopting westernized cheese consumption habits.
This type of customer requires tailored marketing and distribution services, probably
involving investments in local distributors.
WHICH CUSTOMER SERVICE MODELS WILL PROVIDE SUSTAINABLE RETURNS?
In an era of growing retail dominance and diminishing opportunities for product
differentiation, the importance of the product’s quality and flavor is already
recognized, so the competitive edge increasingly needs to be created in the servicing
models. The shape and form of these models can vary among markets.
In markets where specialty cheeses and branded ranges dominate the retail
shelves, category management services can provide interesting value to retail clients.
In countries such as Germany, the UK and the Netherlands, where the top-four
retailers hold 60% or more of the total retail market, it pays to develop dedicated
servicing models for single retailers.
The ingredients market requires an even higher level of client focus. Assuming
minimum taste and quality levels have been met, the main criteria for success are how
the cheese is supplied and how well it is suited for the product applications it is used
in.
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Specialization is generally considered to be a strength that translates into high
processing efficiency, more consistent quality and better client service models. In
commodity cheeses, however, these factors are increasingly a given and there are few
opportunities to create a competitive edge. Specialization could even become a threat
when ad-hoc multi-product suppliers use specialists’ core markets to dispose of milk
surpluses triggered by global market drivers.
There is no easy way to avoid situations where single-product processors flood
their own core markets in times of oversupply. However, the new volatility of the
global dairy market requires companies to develop greater flexibility and versatility in
terms of sales opportunities, especially in times of oversupply. Cooperation and joint
ventures with complementary partners could be options to avoid extra investments
and an inefficient capital base.
CONCLUSION
The EU cheese market is changing from a comfortable place where all players
were able to find stability and steady growth to a market where the remaining growth
will only be captured by players that have more to offer than just volume and price. EU
cheese specialists need to reconsider their business models and try to incorporate new
growth areas, either in new geographies or in value-adding services.
Customers in retail, foodservice and food processing are only willing to guarantee
continued business or to pay premiums to suppliers that offer unique services in
logistics, cutting and packing or product applications. Value-adding services will be a
way for suppliers to mitigate the risks of increasing volatility in the commodity cheese
market and the pressure coming from other products generating similar returns to
cheese. For the large commodity cheese manufacturers, the paramount strategic
question remains whether to focus on the upstream part of the cheese value chain and
continue to improve the efficiency of the cheese-making process or to find ways to
develop their involvement with the downstream part of the chain by creating unique
selling points or tailored customer services. Their choice will determine whether the
downstream part of the chain remains populated by independent smaller specialists or
whether they will become consolidated into larger integrated businesses.
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The new reality in the global market dictates a balanced approach to any
additional milk produced in the EU in the years to come. Extra capacity in cheese can
only be justified if it is in line with EU market growth or when access to new export
markets is created. Growth opportunities in markets outside the EU are interesting,
but a dedicated country-by-country marketing effort will be required to provide a
stronger competitive edge against exports from more efficient milk production
regions.
REFERENCES
http://www.thedairysite.com/articles/2875/european-cheese-market
www.portal.euromonitor.com
GIRA, 2011
ZMB, Rabobank, 2011
ZMB, Friesland-Campina, CBS, Rabobank, 2011
Dutch Dairy Board, 2011
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*Out of the Arab countries, the following countries are chosen: Saudi Arabia, United Arab
Emirates, Algeria and Egypt. The choice has been made taking into account the importation
volumes in this region.
CHEESE MARKET OVERVIEW OF THE UNITED ARAB EMIRATES
EXECUTIVE SUMMARY
The overwhelming use of dairy products is as primary food for direct
consumption and this has always been the case. Studies in Gulf countries amongst
national families show that there is a strong belief in the nutritional value of dairy food
and also a strong sense of these being traditional foods.
The traditional culinary repertoire consisted of robust dishes making good use of a
limited scope of resources. Dairy products had a role in these dishes; nearly half the
recipes in a book of substantially traditional UAE recipes contain at least one dairy
product.
The UAE Government has a keen interest in fostering the development of the
food processing industry having invested some USD 1.4 billion since 1994 to develop a
value-added food manufacturing sector to target local and re-export markets. The
result is that there are around 150 food processing plants in the country representing a
large chunk of the region’s food manufacturing capability. Dubai’s food processing
industry is worth approximately USD 3 billion and achieves growth of 11% per annum.
Major food processing plants include vegetable oils, soft drinks and juices, snack foods,
pasta, confectionary and dairy products.
The UAE foodservice market has risen by 11% per annum in the last two years
and accounts for USD 3.54 billion. This increase is in response to changing market
dynamics, rising demographics, commerce income and tourism and expanding
infrastructure developments (especially in Abu Dhabi). Meat, poultry and fish
accounted for 30% of purchases by the UAE’s food service sector, followed by dairy
products at 13% and rice, pasta, cereals and gourmet condiments also at 13%.
Food security dominates government priorities and economic planning: there
has been growing interest to be self-reliant by producing own food rather than
encouraging imports. The Abu Dhabi Government has invested heavily in over 8,000
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organic farms to ensure growers get the best in terms of assistance in agricultural
input and expertise to manage the source of the food supply chain.
This rapidly growing population and emerging affluence in the UAE has spiraled
the demand for high quality, organic and specialized foods. In addition, the
introduction of hypermarkets and superstores is reshaping the retail sector thus
providing a diverse range of food to supplement the taste preferences of a large
expatriate population. In recent years, there has been a shift in food habits from
traditional to Western-style convenience foods.
DOMESTIC PRODUCTION VOLUMES
The diverse population in the United Arab Emirates encourages variety,
particularly in the cheese category. Regional cheeses such as Halloumi, Akawi and
Labneh are typically sold unpackaged at cheese counters. However, international
cheese varieties are sold both packaged and unpackaged in fairly equal proportions.
Edam, Brie and feta are the most popular varieties of Western cheeses and are widely
available across the United Arab Emirates.
Halloumi is another popular import from Cyprus. About 1,000 tons are exported
annually to Arab countries. A similar cheese, hellim, is made in the Lebanon and
Syria. In Cyprus the cheeses were traditionally prepared from sheep and goat’s milk
and after a minimum of 40 days in brine were considered to be ripe. Modern industrial
production uses sheep’s, goat and cow’s milk and the cheeses are not ripened. The
cheeses are produced by the pasta filata technique and are moulded into a flattish
block with a pronounced central fold. Dried mint is sometimes included in this fold and
the individual cheeses are vacuum packed with a little whey. The high protein content
ensures that this cheese does not melt when cooked making it ideal for grilling or frying
a mezze dish.
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Picture 1. Halloumi Cheese
Akawi is Fresh white salted/unsalted cheese shaped by cloth wrapping into
blocks of about 500g with rounded corners, made from cow's milk and originating in
the Lebanon. Production has spread to other countries and it is produced in several
forms, salted hard versions for eating and minimum salt versions which melt readily for
cooking. The low salt type is used for sweets, the salt being soaked out first. The
cheese is firm with a slightly crumbly texture and a mild flavor.
Picture 2. Akawi Cheese
Labneh is strained or thickened yoghourt, similar to a cream cheese. This is best
eaten with a drizzle of olive oil and some fresh flat bread, khubz. It can be used with
limitations as a substitute for cream and sour cream.
Picture 3. Labneh Cheese
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The most dynamic category in 2011 was unprocessed cheese. Growth in this
category was underpinned by the performance of unpackaged hard cheese, which
achieved the strongest current value growth of 8%. In addition to its higher unit price,
unpackaged hard cheese benefited from the influx of supermarkets and hypermarkets
such as Carrefour and Lulu, which improved the availability of such products.
The table below represents percentage value breakdowns of spreadable processed
cheeses by type.
Table 25. Spreadable Processed Cheese by Type in the UAE: % Value Breakdown % retail value rsp
Cheese Type Years
2006 2007 2008 2009 2010 2011 Cream Cheese 40.0 40.0 40.0 42.0 43.0 44.0 Reconstituted Cheese 60.0 60.0 60.0 58.0 57.0 56.0 TOTAL 100.0 100.0 100.0 100.0 100.0 100.0
Source: www.portal.euromonitor.com
FOOD RETAIL SECTOR AND THE LARGEST CHEESE PRODUCERS
Cheese is typically purchased in supermarkets/hypermarkets in the United Arab
Emirates, with the channel accounting for 74% of value sales in 2011.
Supermarkets/hypermarkets carry a wide variety of cheese at lower prices than small
grocery stores, and also benefit from improved cold chain distribution. In recent years,
hypermarkets in particular have gained value share as a result of increased business at
fresh cheese counters.
Food sold in retail outlets consist of 75-80% imported consumer-ready
products, and 20-25% locally processed foods. Locally produced food, accounting for
only 15% of the market includes cultivated products (vegetables), animal products
(dairy products, poultry and eggs) and seafood.
Large retail chains such as Carrefour, Spinneys and Lulu dominate the big format
supermarket trade with a 50% share in the market. Store sales by independent
retailers (Co-ops) account for 21%, small grocery/convenience stores 28% and
wholesalers around 1%.
The table below represents the sales of cheese by distribution format.
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Table 26. Sales of Cheese by Distribution Format in the UAE % retail value rsp
Distribution Format Years
2006 2007 2008 2009 2010 2011 Store-Based Retailing 100.0 100.0 100.0 100.0 100.0 100.0
*Grocery Retailers 100.0 100.0 100.0 100.0 100.0 100.0 **Supermarkets/Hypermarkets 72.0 73.0 73.0 74.0 74.0 74.2
**Discounters — — — — — — **Small Grocery Retailers 13.0 12.0 12.0 11.5 13.0 13.0
***Convenience Stores 3.5 2.5 2.5 2.5 2.5 2.5 ***Independent Small Grocers 9.6 9.6 9.5 9.0 10.5 10.5
***Forecourt Retailers — — — — — — **Other Grocery Retailers 15.0 15.0 15.0 14.5 13.0 12.8
*Non-Grocery Retailers — — — — — — **Health and Beauty Retailers — — — — — —
**Other Non-Grocery Retailers — — — — — — Non-Store Retailing — — — — — —
*Vending — — — — — — *Homeshopping — — — — — —
*Internet Retailing — — — — — — *Direct Selling — — — — — —
TOTAL 100.0 100.0 100.0 100.0 100.0 100.0 Source: www.portal.euromonitor.com
Kraft Food Dubai retained its leadership in 2010, gaining two percentage points
to reach a 27% value share. The company has built on the popularity of its processed
cheese products such as Kraft Singles and Kraft Original Cream Cheese Spread, and has
expanded the distribution of its unprocessed cheeses, particularly shredded cheeses
such as Kraft Mexican Taco Shredded Cheese and Kraft Italian Shredded Cheese. Kraft
has also introduced new varieties of spreadable cheese such as Philadelphia Chive &
Onion Cream Cheese and Kraft Grated Parmesan Cheese.
International brands perform well in the United Arab Emirates, benefiting from
strong brand awareness and widespread distribution. Kraft and Arla National Food
Products in particular have been successful in meeting the demands of the diverse
consumer base in the United Arab Emirates. Arla in particular has been successful in
the region due to the popularity of Puck processed cheeses.
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The table below represents the company shares occupied in cheese and/or
dairy production in the UAE.
Philadelphia Cream Cheese, produced by Kraft, was the most heavily advertised
cheese in 2011. The campaign ran for several months and featured banners in the Mall
of the Emirates and on the Jumeirah Beach Residence Walk. At weekends, planes flew
over the beach of the Jumeirah Beach Residence with banners advertising Philadelphia
Cream Cheese. The campaign proved successful in raising consumer awareness of the
product and presenting various uses for cream cheese.
Table 27. Cheese Company Shares in the UAE % retail value rsp
Company Years
2006 2007 2008 2009 2010 Kraft Food Dubai 22.5 23.1 23.4 25.0 27.0
Arla National Food Products Co LLC 29.0 26.2 22.0 23.0 23.3
Almarai Co Ltd 17.0 17.1 19.0 21.0 22.3 Unibel SA 15.0 14.0 14.3 15.0 13.0 Bel, Groupe 6.2 6.4 6.1 6.0 7.0 Others 10.3 13.3 15.2 10.0 7.4 TOTAL 100.0 100.0 100.0 100.0 100.0
Source: www.portal.euromonitor.com
COMPETITION FIELD
Food suppliers from all over the world vigorously compete for market share in
the UAE.
CONSUMER PREFERENCES
Increased health consciousness is pushing consumers away from processed
cheese and towards unprocessed cheese, which is considered healthier. Busy lifestyles
are also driving consumers to look for convenient food items. As a result,
manufacturers are launching sliced unprocessed cheese varieties, such as President
Sliced Mozzarella Cheese produced by United Food Industries Corp. Building on the
success of ready-to-use cheese varieties; Kraft has expanded its shredded unprocessed
cheese line to include Kraft Mexican Four Cheese and Kraft Shredded Colby Jack. These
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products are generally priced higher than their bulk counterparts but have been gained
in popularity because of their ease of use.
The increased prevalence of supermarkets and hypermarkets has had a
profound impact on cheese in the UAE. International players such as Carrefour and
Waitrose have improved cold channel distribution chains and as a result have
expanded their offerings of both packaged and unpackaged hard cheeses. Consumer
demand has yet to be met, however, as consumers continued to limit how often they
eat out. As a result, consumers are dining at home more and are looking for higher-
quality ingredients.
The consumer preferences are best portrayed by the volumes of sales. The
table below represents the sales of cheese by type for 2006-2011.
Table 28. Sales of Cheese by Category in the UAE thsd tons
Production Years
2006 2007 2008 2009 2010 2011 Processed Cheese 7.7 8.3 8.9 9.5 10.0 10.5
Spreadable Processed Cheese 5.5 5.9 6.4 6.8 7.1 7.4 Unspreadable Processed Cheese 2.2 2.4 2.5 2.7 2.9 3.1
Unprocessed Cheese 5.8 6.3 6.7 7.2 7.7 8.1 Hard Cheese 2.5 2.7 2.9 3.1 3.3 3.4 Soft Cheese 3.3 3.6 3.9 4.1 4.4 4.7
Spreadable Unprocessed Cheese — — — — — — Cheese 13.5 14.6 15.6 16.7 17.7 18.7
Source: www.portal.euromonitor.com
The demand for processed cheese is higher than the one of the unprocessed
cheese. Among the sales of the unprocessed cheese in the UAE, a dominant place
takes soft cheese.
Obviously, the crisis has had a little influence on the budget of the consumers
who prefer to have cheese on their tables. This can also be proved by the graph below
that represents only the total sales of cheese in the UAE.
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79 | Page
Source: www.portal.euromonitor.com
The sales of cheese have grown constantly during 2006-2011. For 5 years the
sales of cheese in the UAE have increased by almost 38.5%.
PRICES
The price of the local cheese in the UAE per kilo is about USD 10.583.
Value growth continued to weaken in 2011, reaching nearly 7% in current value
terms. This was slower than the review period CAGR of 9%. The slowdown in value
growth was underpinned by inflation and price fixing as well as lower prices offered by
hypermarkets. Volume growth also slowed, although not as much, to 6% from a review
period CAGR of 7%. As the category matures, growth will follow population
fluctuations more closely.
Average unit price rose slightly in 2011 by just over 1%4. Growth was driven by
price increases in unprocessed hard cheese, which saw a rise of 2% in 2011. Improved
distribution has made special unprocessed hard cheeses, such as Frico from
FrieslandCampina Cheese LLC, increasingly available. New formats of imported
unprocessed cheeses have contributed to raising unit prices, such as Frico slices, which
have a higher price per gram than bulk sizes. Conversely, government-enforced price
caps and reductions have weakened unit price growth of processed cheeses to ensure
their affordability for lower-income earners.
3 Latest update: August 2012 4 For more detailed information, see Figure 3 in Annex.
2006 2007 2008 2009 2010 2011
Cheese 13.5 14.6 15.6 16.7 17.7 18.7
0.0
5.0
10.0
15.0
20.0
thsd
tons
Graph 8. Sales of Cheese in the UAE
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IMPORTS
The table below represents the UAE’s imports of cheese and curds for 2005,
2007-2008. It is obvious that imports of this category have had a considerable rise
during the review period. In 2008 vis-à-vis 2007, the imported volumes of cheese and
curds have risen by up to 22.7%. The main exporters of cheese and curds to the UAE
are Saudi Arabia, Denmark, Australia, France, New Zealand and the USA.
Table 29. UAE’s Imports of Cheese and Curds
thsd USD
Exporters Imported Value in 2005
Imported Value in 2007
Imported Value in 2008
World 91308 148254 181884 Saudi Arabia 14281 23587 34932 Denmark 11639 20067 19009 Australia 14339 19919 13973 France 11291 11934 13764 New Zealand 7332 14194 11658 USA 5196 5338 10537 Netherlands 1596 5318 8925 Bahrain 4 18 8480 Morocco 1662 6068 8372 United Kingdom 5167 7382 7816 Egypt 3907 4955 7777 Cyprus 2861 3547 5350 Germany 2574 3856 5287 Czech Republic 1221 6470 5182 Italy 1609 2470 4844 Hungary 54 1966 2970 Poland 1912 2284 2639 Syrian Arab Republic 1446 2173 2197
India 245 511 1473 Austria 1093 1572 1416 Turkey 317 453 1082 Switzerland 183 497 682 Jordan 408 622 603 Bulgaria 291 584 403
Source: www.trademap.org
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EXPORTS
In 2008 vis-à-vis 2007, the UAE exports of cheese and curds have dropped
insignificantly — by circa 0.6%. The main importers are Oman, Maldives and Qatar.
Table 30. UAE Exports of Cheese and Curds
thsd USD
Importers Exported Value in 2005
Exported Value in 2007
Exported Value in 2008
World 7439 9878 9820
Oman 3036 3620 4111 Maldives 447 1525 858 Qatar 516 458 806 Ethiopia 38 164 435
United Republic of Tanzania
268 498 392
Iran (Islamic Republic of)
201 314 328
Czech Republic 0 0 263 Seychelles 102 946 255 Kenya 177 52 238 Kuwait 78 17 228 Turkmenistan 23 137 219 India 40 46 170 Pakistan 211 460 168 Saudi Arabia 174 22 150 Somalia 0 0 134 Côte d'Ivoire 0 100 133 Jordan 6 2 100
Source: www.trademap.org
PROSPECTS
Thanks to the diversity of the population in the United Arab Emirates and
increasing sophistication in terms of tastes, it is expected that value-added products
will drive growth over the forecast period. Value-added products will focus on health
benefits and convenience. As increased concerns about obesity will continue to drive
growth in healthier hard unprocessed cheese, the demand for convenience will
stimulate growth of ready-to-use products, both processed and unprocessed.
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The table below shows the forecast sales of cheese for the UAE in terms of
volume.
Table 31. Forecast Sales of Cheese by Category in the UAE thsd tons
Production Years
2012 2013 2014 2015 2016 Processed Cheese 11.1 11.6 12.1 12.6 13.1
Spreadable Processed Cheese 7.8 8.1 8.4 8.7 9.0 Unspreadable Processed Cheese 3.3 3.5 3.7 3.9 4.1
Unprocessed Cheese 8.6 9.0 9.5 10.0 10.6 Hard Cheese 3.6 3.7 3.8 3.9 4.0 Soft Cheese 5.0 5.3 5.7 6.1 6.5
Spreadable Unprocessed Cheese — — — — — Cheese 19.6 20.6 21.6 22.6 23.6
Source: www.portal.euromonitor.com
The 4-year lag of time during 2012-2016 is predicted to increase the sales of
cheese by 20.4%. Processed cheese sales will increase by 18%, and unprocessed
cheese — by 23.3%.
The economy of the United Arab Emirates continues to recover, and with it
consumer confidence. As hectic lifestyles and long working hours continue, sales of
convenience products such as pre-sliced and pre-shredded cheeses will see growth.
Furthermore, as cold chain distribution becomes increasingly efficient throughout the
United Arab Emirates, rural areas will gain access to more and more cheese products,
increasing the demand for variety.
The sales forecast in cheese for 2015-2016 amounts to 4.4%. Whereas, the
CAGR for 2011-2016 amounts up to 4.8% and the total sales growth during 2011-2016
is going to be 26.6%. Cheese is expected to register a constant value CAGR of 4% over
the forecast period. This will be stronger than the 3% CAGR of the review period.
Slower growth will be a reflection of the category maturing rather than waning
demand in most areas. However, in some categories such as spreadable processed
cheese, which is expected to register a constant value CAGR of 3%, this will not be the
case. It is likely that growing health concerns will drive consumers away from
processed cheese spreads and towards cheese products that are considered healthier.
In constant terms unit prices are expected to fall. On the one hand, the number of
value-added products entering the marketplace will continue to increase over the
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forecast period, as will milk prices, causing a rise in unit price. However, the
government has consistently limited price increases and is expected to continue to
maintain the affordability of staple food items. As a result, the types of cheese with the
highest volume sales will be most affected by price caps, which will keep unit price
growth low.
It is expected that new product launches will perform well in the short term.
Given the rapid increase in the number of shredded cheese SKUs offered by Kraft, it is
expected that the distribution of these products will continue to widen. Other ready-
to-use products, such as pre-sliced cheeses, are expected to see a strong performance
in value terms due to their higher unit pricing.
REFERENCES
http://www.enhg.org/alain/phil/dairy/dairy.htm
www.austrade.gov.au
http://www.numbeo.com/food-prices/country_result.jsp?country=United+Arab+Emirates
www.portal.euromonitor.com
www.danderma.net
www.balticmaid.com
http://coinmill.com/AED_USD.html
www.trademap.org
http://coinmill.com/AED_USD.html#USD=1
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CHEESE MARKET OVERVIEW OF SAUDI ARABIA
EXECUTIVE SUMMARY
Cheese benefited from a growing focus on health and wellness and nutrition in Saudi
Arabia towards the end of the review period. Many consumers are switching from
jams and preserves to spreadable processed cheese with bread. Consumers are
concerned about the high sugar content and use of preservatives in jams and
preserves, viewing reduced fat spreadable processed cheese as a healthier option. This
trend particularly benefited cream cheese, which has a healthier and more natural
positioning in comparison to reconstituted cheese and also offers a wider range of
reduced fat variants. Consequently, cream cheese extended its dominance in
spreadable processed cheese by a further two percentage points over the previous
year, to account for 72% value share in 2011.
Spreadable processed cheese saw the strongest performance in 2011 over the
previous year, with volume and current value sales growing by 7% and 14%
respectively. This was due to strong new product development in the product area
towards the end of the review period. Al Safi Danone for example entered this product
area with cheese packaged in a glass jar, while Kraft introduced new and innovative
squeezable packaging. Saudi New Zealand Milk Products meanwhile launched several
new flavors for its La Vache Qui Rit triangle portion packs.
Cheese is led by spreadable processed cheese in terms of retail volume sales in 2011,
with this product area accounting for 44% volume share. This product area benefits
from a strong position for domestic players and is led by Almarai. Traditional cheese
types popular in Saudi Arabia include white/feta cheese and Haloumi, with these
accounting for 17% and 51% value share in unprocessed cheese in 2011. Cheese is
mainly consumed with breakfast or in salads. Feta notably benefited from a growing
consumption of salads towards the end of the review period as consumers sought to
eat healthier diets, gaining a percentage point in share in the year.
Within hard cheese, sales are meanwhile dominated by cheddar, which is offered in
both cans and in a block format. Cheddar accounted for 8% value share in overall
unprocessed cheese in 2011 and saw a strong performance, with a gain of a
percentage point over the previous year. Cheddar benefited from widening use in
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cooking towards the end of the review period, with consumers showing a growing
interest in the use of full-flavored cheddar when preparing pasta and hot sandwiches.
DOMESTIC PRODUCTION VOLUMES
The graph below represents cheese and fresh cows’ milk production in Saudi Arabia for
2006-2011.
Source: www.portal.euromonitor.com
During 5 years fresh cows’ milk production in Saudi Arabia has increased by 71%.
Cheese production growth rates have also increased rapidly — up to 105% during this
period.
The per capita cheese production of Saudi Arabia is portrayed below.
Source: www.portal.euromonitor.com
2006 2007 2008 2009 2010 2011
Production of Cheese 87.5 87.5 127.5 167.5 167.5 179.5
Production of Fresh Cows' Milk 1031.4 1095.1 1370.4 1508.4 1670.0 1765.8
0200400600800
100012001400160018002000
thsd
tons
Graph 9. Cheese and Fresh Cows' Milk Production in Saudi Arabia
2006 2007 2008 2009 2010 2011
World 2.9 3.0 3.0 2.9 2.9 2.9
Saudi Arabia 3.6 3.5 5.1 6.5 6.4 6.7
kg
Graph 10. Per Capita Production of Cheese in Saudi Arabia
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Until 2007, the cheese production in Saudi Arabia was close to the one of the world.
Since 2008, the figure has increased rapidly.
The table below represents percentage value breakdowns of spreadable
processed cheeses and unprocessed cheeses by type.
Table 32. Spreadable Processed Cheese by Type in Saudi Arabia: % Value Breakdown
% retail value rsp
Cheese Type Years
2006 2007 2008 2009 2010 2011 Cream Cheese 54.0 60.0 62.0 64.0 70.0 72.0 Reconstituted Cheese 46.0 40.0 38.0 36.0 30.0 28.0 TOTAL 100.0 100.0 100.0 100.0 100.0 100.0
Source: www.portal.euromonitor.com
The share of cream cheese in Saudi Arabia dominates over the share of reconstituted
cheese. To say more, the share of cream cheeses in Saudi Arabia tends to increase.
The following table refers to unprocessed cheeses in Saudi Arabia.
Table 33. Unprocessed Cheese by Type in Saudi Arabia: % Value Breakdown
% retail value rsp
Cheese Type Years
2009 2010 Blue Cheese 4.0 4.0 Cheddar 6.0 7.0 Edam 5.0 6.0 Feta 15.0 16.0 Gouda 4.0 5.0 Haloumi 50.0 51.0 Others 16.0 11.0 TOTAL 100.0 100.0
Source: www.portal.euromonitor.com
Among unprocessed cheeses in Saudi Arabia, Haloumi cheese is a leader with
50% share in 2009. The same refers to 2010 with 51%. The 2nd place belongs to Feta
cheeses.
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FOOD RETAIL SECTOR AND THE LARGEST CHEESE PRODUCERS
The table below represents the sales of cheese by distribution format.
Table 34. Sales of Cheese by Distribution Format in Saudi Arabia % retail value rsp
Distribution Format Years
2006 2007 2008 2009 2010 2011 Store-Based Retailing 100.0 100.0 100.0 100.0 100.0 100.0
*Grocery Retailers 100.0 100.0 100.0 100.0 100.0 100.0 **Supermarkets/Hypermarkets 39.0 40.0 43.8 45.0 46.0 47.0
**Discounters — — — — — — **Small Grocery Retailers 53.3 51.2 47.2 45.6 47.8 46.5
***Convenience Stores 9.0 9.4 9.7 9.9 10.0 10.2 ***Independent Small Grocers 43.5 39.8 35.5 33.7 36.0 35.5
***Forecourt Retailers 0.8 2.0 2.0 2.0 1.8 0.8 **Other Grocery Retailers 7.7 8.8 9.0 9.4 6.2 6.5
*Non-Grocery Retailers — — — — — — **Health and Beauty Retailers — — — — — —
**Other Non-Grocery Retailers — — — — — — Non-Store Retailing — — — — — —
*Vending — — — — — — *Home Shopping — — — — — —
*Internet Retailing — — — — — — *Direct Selling — — — — — —
TOTAL 100.0 100.0 100.0 100.0 100.0 100.0 Source: www.portal.euromonitor.com
According to the data of 2011, supermarkets/hypermarkets are the main places
where cheese in Saudi Arabia is sold. Small grocery retailers are in second place.
The table below represents the company shares occupied in cheese and/or dairy
production in Saudi Arabia.
Table 35. Cheese Company Shares in Saudi Arabia % retail value rsp
Company Years
2006 2007 2008 2009 2010 Almarai Co Ltd 17.0 18.0 21.1 22.2 23.2 Saudi New Zealand Milk Products Co Ltd 16.2 16.0 15.0 16.5 16.0 Kraft Jacobs Suchard Ltd 12.7 11.8 11.5 12.0 12.1 Deemah - United Food Industries Corp Ltd 11.1 10.4 9.9 10.2 9.9 Danya Foods Ltd 9.1 9.7 6.8 8.3 7.9 Sunbulah Food & Fine Pastries Manufacturing Co Ltd 6.6 6.4 6.1 7.1 7.3
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Hadju Hungarian Cheese Co 3.5 3.5 3.4 4.0 4.0 Halwani Bros Co 3.9 3.4 3.5 3.8 3.7 Frico International LLC 1.5 1.7 2.1 2.6 3.0 National Agricultural Development Co (NADEC) 1.2 1.4 1.5 1.5 1.5 Al Othman Agricultural & Processing Co 2.6 2.8 3.2 1.8 1.4 Lactalis International 0.9 0.9 0.9 1.0 1.0 Saudi Dairy & Foodstuff Co Ltd (SADAFCO) 3.0 2.5 2.2 0.9 0.8 Al Mazrah Dairy 0.8 0.9 1.0 0.7 0.7 Bonlac Foods Ltd 0.8 0.7 0.7 0.6 0.6 Entremont, Groupe 0.8 0.6 0.6 0.6 0.5 Picon SA 0.7 0.7 0.6 0.6 0.5 Emborg Foods Middle East 1.0 0.7 0.5 0.4 0.4 Salman S Al Rashed Co For Food Industries 0.1 0.3 0.5 0.4 0.3 AL Mawanea Trading Services Co 0.2 0.2 0.4 0.3 0.3 National Food Co (Americana) 0.2 0.2 0.4 0.3 0.3 Pinar Dairy Food Co — — 0.3 0.3 0.3 Bega Co-operative Society Ltd — 0.1 0.2 0.2 0.2 Bongrain SA 0.1 0.1 0.1 0.1 0.1 Other Private Label 0.8 0.9 1.0 1.0 0.9 Others 5.3 5.9 6.3 2.7 3.0 TOTAL 100.0 100.0 100.0 100.0 100.0
Source: www.portal.euromonitor.com
“Almarai Co Ltd” is a leader having the most share package in cheese production.
“Saudi New Zealand Milk Products Co Ltd” is in the 2nd place.
CONSUMER PREFERENCES
The consumer preferences are best portrayed by the volumes of sales. The
table below represents the sales of cheese by type for 2006-2011.
Table 36. Sales of Cheese by Category in Saudi Arabia tons
Production Years
2006 2007 2008 2009 2010 2011 Processed Cheese 54427.0 61026.4 67219.9 72895.7 79614.5 85141.4
Spreadable Processed Cheese 38442.4 43711.2 48519.4 52886.2 57704.1 61870.3 Unspreadable Processed Cheese 15984.5 17315.3 18700.5 20009.5 21910.4 23271.0
Unprocessed Cheese 42397.5 45120.7 48145.3 51115.9 54085.6 56788.1 Hard Cheese 18001.1 19243.3 20438.9 21606.7 22600.3 23476.1 Soft Cheese 24341.6 25776.2 27580.6 29373.3 31341.3 33162.2
Spreadable Unprocessed Cheese 54.9 101.1 125.9 135.9 143.9 149.7 Cheese 96824.5 106147.1 115365.2 124011.6 133700.1 141929.5
Source: www.portal.euromonitor.com
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The demand for processed cheeses is higher than the one of the unprocessed
cheeses in Saudi Arabia. Among the sales of the unprocessed cheese in Russia, a
dominant place takes soft cheese.
Obviously, the crisis has had a little influence on the budget of the consumers
who prefer to have cheese on their tables. This can also be proved by the graph below
that represents only the total sales of cheese in Saudi Arabia.
Source: www.portal.euromonitor.com
PRICES
Unit price rose above the level of inflation in 2011 over the previous year, with
constant value unit price rising by 1% for overall cheese. This was due to increasing
raw material costs and currency fluctuations, with many products being imported.
Lower-priced product areas typically saw a stronger unit price increase than higher-
priced products, which offer a wider margin for cost increases. Consequently, soft
cheese and spreadable processed cheese saw 1% and 2% constant value unit price
growth in 2011, with these products having a unit price of SAR 23/kg (or circa USD
6.1/kg) and SAR 30/kg (or circa USD 8/kg) in the year. Packaged hard cheese was
meanwhile higher priced with a unit price of SAR 45/kg (or circa USD 12/kg) in 2011
and saw less than half a percentage point increase in constant value unit price5.
5 For more detailed information, see Figure 4 in Annex.
0.020000.040000.060000.080000.0
100000.0120000.0140000.0160000.0
2006 2007 2008 2009 2010 2011
tons
Graph 11. Sales of Cheese in Saudi Arabia
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IMPORTS
The table below shows that the imports of cheese and curd in Saudi Arabia
have considerably risen in 2010. Vis-à-vis 2009, the volumes have increased by up to
37.5%. The main exporters are Egypt, Bahrain, Denmark, Poland, New Zealand and
Australia.
Table 37. Cheese and Curd Imports by Saudi Arabia thsd USD
Exporters Imported Value in
2006
Imported Value in
2007
Imported Value in
2008
Imported Value in
2009
Imported Value in 2010
World 332870 369648 356260 353128 485570 Egypt 43187 58862 79301 79915 87954 Bahrain 0 0 39433 91005 78319 Denmark 39699 62722 56335 68524 75193 Poland 25204 30637 36574 39656 41659 New Zealand 32403 39967 45778 29672 36661 Australia 96556 97046 65417 14862 31112 France 25069 22431 0 0 28616 USA 5707 7347 0 0 25945 Ireland 609 1107 6079 7805 13762 Germany 15256 5296 0 0 13134 Hungary 7372 8620 13089 10689 12883 Canada 4593 4451 0 0 7763 Netherlands 5376 4001 0 0 4396 Syrian Arab Republic 732 997 0 0 3914
Czech Republic 4211 4628 2241 2484 3851 Cyprus 1789 2123 3203 3702 3849 Morocco 15008 7938 7669 4651 3300
Source: www.trademap.org
EXPORTS
The export volumes of cheese and curd in Saudi Arabia have a trend of steady
rise. This is shown in the table below. The exports have almost tripled in 2010 vis-à-vis
2006.
Table 38. Cheese and Curd Exports of Saudi Arabia thsd USD
Importers Exported Value in
2006
Exported Value in
2007
Exported Value in
2008
Exported Value in
2009
Exported Value in
2010
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91 | Page
World 121609 164977 187495 224808 329523 Chinese Taipei 0 18 0 224808 266670
Area Nes 0 7 187227 0 62713 Source: www.trademap.org
PROSPECTS
Reduced fat products are expected to become increasingly significant in cheese
during the forecast period. These products are likely to prove most successful in
spreadable processed cheese, with reduced fat cream cheese benefiting from many
consumers switching from jams and preserves to these products when eating bread.
However, reduced fat cheese is also expected to emerge in a wider range of product
areas. The strong 6% volume CAGR expected for soft cheese during the forecast period
is for example likely to be driven by reduced fat variants, particularly within
mozzarella.
The forecast period is expected to see a slight slowing of volume growth in
comparison to the 8% CAGR seen during the review period, although at 6% CAGR
growth will remain dynamic. Growth is expected to slow mainly due to a higher sales
level. In absolute terms, the forecast period is expected to see a stronger volume
increase in comparison to the review period.
Dynamic growth in cheese will continue to be underpinned by improved cold
chain systems in the country. More supermarkets/hypermarkets and convenience
stores are expected to open in small towns, while independent small grocers are likely
to increase their refrigerated display and storage capacity. Consequently, consumers
are expected to gain access to a widening range of good quality cheese during the
forecast period.
Spreadable processed cheese is expected to continue to see the strongest
growth during the forecast period, with a forecast period CAGR of over 7%. This
product area is expected to benefit strongly from the healthy image of reduced fat
cream cheese, which is expected to attract a growing number of weight-conscious
consumers during the forecast period. Spreadable processed cheese will also continue
to benefit from the strong domestic players in this product area such as Almarai, with
these players offering strong distribution and affordable prices.
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92 | Page
There is also expected to be strong new product development in spreadable
processed cheese during the forecast period. Kraft Jacobs Suchard’s launch of a
squeezable bottle for its Kraft brand is expected to inspire a raft of similar launches.
There could thus well be a shift from glass jar packaging within spreadable processed
cheese to squeezable tubes.
There is expected to be a slight increase in constant value unit price for cheese
during the forecast period, with an overall increase of less than 1%. Players will keep
price increases to a minimum due to increasing price competition in this dynamic
product area. The strongest growth will be seen in spreadable processed cheese and
soft cheese. This will partly be due to these product areas’ low unit price, with smaller
profit margins leaving less room for players to absorb predicted increases in raw
material prices. In addition, these product areas are expected to benefit from
consumers trading up to reduced fat variants and, within spreadable processed
cheese, also to value-added packaging formats such as squeezable tubes.
The table below shows the forecast sales of cheese for Russia in terms of
tonnage.
Table 39. Forecast Sales of Cheese by Category in Saudi Arabia tons
Production Years
2012 2013 2014 2015 2016 Processed Cheese 91256.4 97553.4 104512.3 112146.9 120083.1
Spreadable Processed Cheese 66479.7 71252.9 76547.0 82372.2 88319.5 Unspreadable Processed Cheese 24776.7 26300.4 27965.3 29774.6 31763.6
Unprocessed Cheese 59788.8 63089.7 66441.4 70186.2 73895.5 Hard Cheese 24563.8 25779.0 27096.0 28596.7 30082.8 Soft Cheese 35069.1 37148.7 39177.0 41414.0 43629.6
Spreadable Unprocessed Cheese 156.0 162.0 168.4 175.5 183.1 Cheese 151045.2 160643.0 170953.7 182333.1 193978.6
Source: www.portal.euromonitor.com
The 4-year lag of time during 2012-2016 is predicted to increase the sales of
cheese by 28%. Processed cheese sales will increase by approximately 32%, and
unprocessed cheese — by circa 24%.
Cheese is milk's leap towards immortality. Cliff Fadiman
93 | Page
REFERENCES
http://themoneyconverter.com/USD/SAR.aspx
www.portal.euromonitor.com
www.trademap.org http://coinmill.com/SAR_USD.html#USD=1
CHEESE MARKET OVERVIEW OF ALGERIA
EXECUTIVE SUMMARY
Formerly, cheese was perceived as a premium product, as it was mostly
imported, and few could afford it. The increasing production of domestic cheese also
led to launches of new product ranges, including development of the category of
spreadable processed cheese by PRIPLAIT with several new flavors such as Roquefort,
herbs and shrimp and the increasing production of soft cheese Président that recently
started production in Algeria.
The development and increase in domestic production that has made cheese
be accessible to more consumer groups.
As domestic cheese continued to increase over the review period and consumers that
previously only bought imported cheese started to consume domestically produced
cheese, cheese volume sales saw growth. Domestically produced cheese has come a
long way in terms of quality and this is the reason that cheese volume sales are
starting to see good growth. In addition, the increasing quality and production of
domestically produced cheese has meant that an increasing number of consumers are
getting used to eating more cheese on a regular basis.
Unpackaged cheese can be found in outdoor markets essentially and in rural
areas, often as homemade spreadable cheese made of cow’s milk.
However, domestic production of camembert has begun and this cheese is eaten as a
dessert.
DOMESTIC PRODUCTION VOLUMES
The per capita cheese production of Algeria is close to zero level.
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Unpackaged cheese can be found in outdoor markets essentially and in rural areas,
often as homemade spreadable cheese made of cow’s milk.
Spreadable processed cheese is the most common cheese in Algeria, used on bread, in
sandwiches.
The tables below represent percentage value breakdowns of spreadable
processed cheeses and unprocessed cheeses by type.
Table 40. Spreadable Processed Cheese by Type in Algeria: % Value Breakdown % retail value rsp
Cheese Type Years
2006 2007 2008 2009 2010 2011 Cream Cheese 65.0 64.0 64.5 65.0 65.3 65.3 Reconstituted Cheese 35.0 36.0 35.5 35.0 34.8 34.7 TOTAL 100.0 100.0 100.0 100.0 100.0 100.0
Source: www.portal.euromonitor.com
We can see that the reconstituted cheeses are less preferable than the cream ones.
The graph below enables to compare the production of cheese and fresh cow’s milk.
Source: www.portal.euromonitor.com
The production of cheese has stayed on the same level since 2006. But the
production of fresh cows’ milk has had some fluctuations especially in 2008; about 4%
decrease in 2008 did not make an obstacle to increase the volumes up to 17% in 2009.
Despite the crisis, the volumes of fresh milk production went on boosting.
2006 2007 2008 2009 2010 2011
Production of Cheese 1.5 1.5 1.5 1.5 1.5 1.5
Production of Fresh Cows' Milk 1548.0 1569.9 1500.0 1750.0 1811.4 1870.7
0200400600800
100012001400160018002000
thsd
tons
Graph 12. Cheese & Fresh Cows' Milk Production in Algeria
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95 | Page
The private sector played a dominant role in the Algerian dairy sector. Private sector
has typically played a major role in the production of processed dairy products (yogurt,
cheese, butter, sour milk, and dairy desserts). Because of the low fixed prices for
pasteurized fluid milk (A.D6 25/liter), (USD 0.34/liter), the private sector would rather
produce these more profitable processed products. However, State- owned group
Giplait remains the leader in the pasteurized reconstituted milk market with 60%
share.
FOOD RETAIL SECTOR AND THE LARGEST CHEESE PRODUCERS
The table below represents the sales of cheese by distribution format.
Table 41. Sales of Cheese by Distribution Format in Algeria % retail value rsp
Distribution Format Years
2006 2007 2008 2009 2010 2011 Store-Based Retailing 100.0 100.0 100.0 100.0 100.0 100.0
*Grocery Retailers 99.9 99.7 99.9 99.6 99.6 99.2 **Supermarkets/Hypermarkets 15.8 15.9 16.0 16.1 16.3 16.4
**Discounters — — — — — — **Small Grocery Retailers 68.4 71.3 71.3 71.2 71.3 71.3
***Convenience Stores — — — — — — ***Independent Small Grocers 68.4 71.3 71.3 71.2 71.3 71.3
***Forecourt Retailers — — — — — — **Other Grocery Retailers 15.7 12.4 12.6 12.3 12.1 11.5
*Non-Grocery Retailers 0.1 0.3 0.1 0.4 0.4 0.8 **Health and Beauty Retailers — — — — — —
**Other Non-Grocery Retailers 0.1 0.3 0.1 0.4 0.4 0.8 Non-Store Retailing — — — — — —
*Vending — — — — — — *Homeshopping — — — — — —
*Internet Retailing — — — — — — *Direct Selling — — — — — —
TOTAL 100.0 100.0 100.0 100.0 100.0 100.0 Source: www.portal.euromonitor.com
Cheese sales continue to be essentially generated through independent small
grocers with 71% of value sales. The sheer size of this retail channel gives it a big
6 A.D stands for Algerian dinar.
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96 | Page
advantage compared to supermarkets/hypermarkets; sales through which are growing
but still generate just 16% of value sales.
The table below represents the company shares occupied in cheese and/or
dairy production in Algeria.
Table 42. Cheese Company Shares in Algeria % retail value rsp
Company Years
2006 2007 2008 2009 2010 Unibel SA 25.1 25.7 27.2 27.9 28.9 Production Industrielle de Produits Laitiers Sarl (PRIPLAIT) 23.6 22.7 22.0 21.0 21.4
Falait Sarl 12.1 12.0 11.7 11.6 11.7 Lactalis, Groupe 10.5 10.5 10.8 11.0 11.2 La Gracieuse Vache Sarl 10.7 10.6 10.4 10.0 9.9 La Jeune Vache Sarl 10.4 10.4 10.1 9.4 9.1 Giplait Spa 4.9 4.8 4.7 4.6 4.5 Others 2.8 3.3 3.2 4.5 3.4 TOTAL 100.0 100.0 100.0 100.0 100.0
Source: www.portal.euromonitor.com
Standard and economy brands strongly compete in cheese. The three leading
companies manufacture both standard and economy brands that are purchased by all
income groups. The reason for this is that there is not much difference in price
between standard and economy brands. Premium brands are few in cheese,
represented only by imported brands, although sales are small as most upper income
consumers prefer to buy premium cheese abroad and bring it back home with them
rather than the imported premium products in Algeria. There is no private label in
Algeria.
Unibel SA remained the key player in 2010 and generated 29% of value shares,
followed closely by PRIPLAIT with a 21% value share. Unibel, with its brand La Vache
Qui Rit, gained from the strong brand recognition advertised for a long time through
French TV channels available in the majority of households. Besides, since it started
manufacturing in Algeria, its prices dropped considerably and became affordable to
the majority. PRIPLAIT also gained share thanks to its regular product development. It
launched its product in three new flavors: Herbs, Roquefort and shrimp.
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Unibel, the current category leader, saw the biggest value sales increase in 2010 and
reinforced its leading position thanks to the strong marketing presence in the country.
The company regularly advertises on local TV and is present on international television
channels that helped it to continue to increase its volume sales for La Vache Qui Rit.
The standard price band of this brand also helped it to gain more sales.
Cheese leaders are split between international and domestic brands, despite
the key player being an international brand. However, the majority of brands are
manufactured in Algeria, which gives a price advantage over imported brands.
International brands such as La Vache Qui Rit enjoy international brand recognition
and strong advertising through domestic and international television channels that
greatly influences consumers’ choice since there are only few competitors which can
afford such intensive marketing for mid-priced products. La Vache Qui Rit is produced
domestically so is able to keep its product prices competitive.
The domestic company PRIPLAIT developed its product range of spreadable
processed cheese with three new flavors: Herbs, Roquefort and shrimp. The company
saw fast growth in volume and value sales as a result of offering its products in a
variety of popular flavors. These launches helped to reinforce its presence within the
top three companies in 2010. However, despite the launch of three new flavors,
advertising for was limited to billboards in large cities and a small advertising campaign
that excluded radio and television spots as these were too expensive.
CONSUMER PREFERENCES
Spreadable processed cheese is an area on which domestic production is
focusing, as most domestic production facilities cater more for this type of cheese.
Local consumers also tend to use cheese on bread and in sandwiches, so the
spreadable format is more appropriate to domestic consumers’ needs.
Consumers increasingly buy packaged cheese, particularly since the
development of domestic manufacturers that offer packaged cheese at affordable
prices.
Cream cheese will represent 65% of spreadable processed cheese sales in 2011.
This is the type that is in the majority manufactured in the country and it is also
cheaper that reconstituted cheese.
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98 | Page
The consumer preferences are best portrayed by the volumes of sales. The
table below represents the sales of cheese by type for 2006-2011.
Table 43. Sales of Cheese by Category in Algeria thsd tons
Production Years
2006 2007 2008 2009 2010 2011 Processed Cheese 13.8 15.8 18.0 20.3 22.8 25.8
Spreadable Processed Cheese 12.6 14.4 16.4 18.6 21.1 23.9 Unspreadable Processed Cheese 1.2 1.4 1.5 1.7 1.8 1.9
Unprocessed Cheese 9.5 10.6 11.5 12.4 13.4 14.5 Hard Cheese 7.7 8.6 9.3 10.0 10.7 11.5 Soft Cheese 1.8 2.0 2.2 2.4 2.7 2.9
Spreadable Unprocessed Cheese — — — — — — Cheese 23.3 26.4 29.5 32.7 36.3 40.2
Source: www.portal.euromonitor.com
Source: www.portal.euromonitor.com
The growing trend of the sales is obvious.
IMPORTS
Hard cheese remains essentially imported and is too expensive for the majority. While many development programs are setting up in Algeria, the dairy industry
still relies on imported milk powder for its needs and dairy imports still represented
17% of the total food imports for the first six months of 2011. Dairy imports totaled
15% of the total food imports in 2010. Total dairy imports in 2010 reached USD 991
0.05.0
10.015.020.025.030.035.040.045.0
2006 2007 2008 2009 2010 2011
thsd
tons
Graph 13. Sales of Cheese in Algeria
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99 | Page
million out of which USD 308 million for non fat dry milk (NFDM), USD 591 million for
whole milk powder (WMP), USD 53 million for cheese, USD 31 million for butter and
fats, USD 8 million for other dairy products (whey, buttermilk).
The following table shows also that butter imports increased compared to the
same period last year. In fact, AMF imports increased compared to last year. In 2010,
total butterfat imports reached 4714 tons of which 3,131 tons of butter and 1,582 tons
of anhydrous milk fat (AMF). This calendar year 2011, 6,315 tons of butterfat have
been imported, AMF reached 3,329 tons. This shows that more powder and AMF were
imported to increase production of pasteurized reconstituted fluid milk.
Table 44. Cheese & Butter Imports Comparison in 2010 and 2011 tons
Country Jan-Jun, 2010 Jan-Jun, 2011
Cheese Butter Cheese Butter Ireland 4773 20 3535 434 New Zealand 1057 2118 1157 1680 Netherlands 3473 125 3561 242 France 494 1008 605 1500 Germany 218 25 234 - Australia 140 260 1340 20 Austria 308 - 495 - Argentina 50 321 25 244 Poland 488 - 425 - Denmark 30 25 65 72 U.S. 0 18 - - Italy 3 - 6 - Belgium - - - - Great Britain 175 79 156 300 Spain - - - 600 Uruguay - 625 - 950 Others 33 90 81 273 TOTAL 11242 4714 11685 6315
Source: Algeria Official Trade Data
Imports of cheese are more or less stable as the domestic processing industry
has expanded over the past several years. In the first six months of 2011, 61% of the
imported cheese was cheese for processing destined to the processing industry.
Origins of dairy imports are still the same. Most of the non fat dry milk powder comes
from the EU countries, essentially France with 40% of the market share, followed by
Cheese is milk's leap towards immortality. Cliff Fadiman
100 | Page
Belgium with 21% and Poland with 19%. Whole milk powder originates from New
Zealand (32%), followed by Argentina with 16% market share and Great Britain (10%)
and France (9%). Most of the cheese comes from Ireland, Netherlands and New
Zealand. Butterfat originates from New Zealand and France.
The imports volumes of cheese and curds in Algeria have increased
considerably for 2009-2011. In 2011 vis-à-vis 2009, the volumes have boosted by up to
61%. The major exporters are the Netherlands, Ireland and New Zealand.
Table 45. Cheese and Curds Imports of Algeria
thsd USD
Exporters Imported Value in
2007
Imported Value in
2008
Imported Value in
2009
Imported Value in
2010
Imported Value in
2011 World 44855 39597 39110 52941 63004
Netherlands 7941 9644 8850 12509 19419 Ireland 10835 4505 12019 21675 16108 New Zealand 12663 10050 7360 5633 9741 France 2991 4355 3518 4630 5871 Australia 1815 2731 669 1127 3811 Poland 2520 2744 1968 3592 3506 Austria 343 181 1084 904 1714 Germany 1324 1798 2048 752 1311 UK 0 0 184 239 468 Denmark 95 95 171 267 411 Tunisia 251 266 397 258 325 Italy 106 120 99 112 210 Argentina 1365 305 234 623 102
Source: www.trademap.org
EXPORTS
The exports of cheese and curds by Algeria have abruptly increased in 2011.
This is shown in the table below. The main importers are Libya and Tunisia.
Table 46. Cheese and Curds Exports by Algeria
thsd USD
Importers Exported Value in
2007
Exported Value in
2008
Exported Value in
2009
Exported Value in
2010
Exported Value in
2011 World 5 25 24 1 215
Libya 0 25 0 0 160
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Tunisia 0 0 0 0 55 Source: www.trademap.org
PROSPECTS
The table below represents the forecast sales of cheese for Russia in terms of
volume.
Table 47. Forecast Sales of Cheese by Category in Algeria thsd tons
Production Years
2012 2013 2014 2015 2016 Processed Cheese 29.2 33.4 37.8 42.2 46.8
Spreadable Processed Cheese 27.2 31.2 35.6 39.8 44.3 Unspreadable Processed Cheese 2.0 2.1 2.2 2.3 2.5
Unprocessed Cheese 15.6 16.7 17.9 19.2 20.5 Hard Cheese 12.3 13.2 14.1 15.0 16.0 Soft Cheese 3.2 3.5 3.8 4.2 4.5
Spreadable Unprocessed Cheese — — — — — Cheese 44.8 50.1 55.7 61.4 67.2
Source: www.portal.euromonitor.com
The 4-year lag of time during 2012-2016 is predicted to increase the sales of
cheese by up to 50%. Processed cheese sales will increase by more than 60%, and
unprocessed cheese — by 31.4%.
Cheese is expected to record a strong 11% CAGR in both volume and constant
value terms over the forecast period. Prices are expected to stabilize over the forecast
period due to better control and improved domestic production of raw materials such
as powder milk and liquid milk. Domestic manufacturers are likely to enter into intense
competition amongst them, which is likely to help stabilize milk prices leading to
volume growth over the forecast period. Should they succeed in stabilizing milk prices
whilst providing more cheese on the market, sales will continue to grow as cheese will
be increasingly available for all income groups.
The forecast period CAGR of 11% will be higher than the 10% value CAGR seen
over the review period. Cheese is expected to see numerous new launches, particularly
in spreadable processed cheese, the most popular format, with new flavor launches
expected on the back of the launch of the shrimp, herb and Roquefort launches by
PRIPLAIT. Hard cheese is likely to see better growth as unit prices are expected to
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102 | Page
stabilize alongside an expected increase in consumer purchasing power that will help
to keep growth rates buoyant.
Cheese unit prices are expected to fall over the forecast period thanks to an
expected dip in milk prices over the forecast period. Whilst in 2011, dairy
manufactures suffered from price increases, the expected increases in domestic
production of milk products and their derivatives is expected to force down prices for
milk and cheese.
Because of their high number and wide geographical presence, independent
small grocers are expected to remain the leading distribution channel over the forecast
period. However, because of rapid development of supermarkets/hypermarkets,
which is changing food shopping habits, cheese sales through this channels are
expected to increase, gaining share from independent small grocers.
Because volumes of spreadable processed cheese reached high levels already in
2011, it is the development of domestic production of soft cheese, particularly
camembert and brie that is expected to develop over the forecast period. This
category remains led by imported products, essentially from France with high prices
and domestic production is not able yet to reach the international quality of the
product. However, because the demand is high, several manufacturers are expected to
start this activity, particularly because of the expected decline of milk prices,
consumers will be able to afford other categories than spreadable processed cheese.
The launch by PRIPLAIT of a wider product line is expected to show good
performance, taking advantage of the current and expected strong growth of
spreadable processed cheese. However, because the category is already present with
several brands, other manufacturers are not expected to continue launching products
in the same category but diversify to other cheese categories in order to attract new
consumers into new products instead of making them switch to other brands in the
same category.
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103 | Page
REFERENCES
http://www.thecattlesite.com/articles/2949/algeria-dairy-and-products-annual-report-2011
www.portal.euromonitor.com
www.trademap.org
Algeria Official Trade Data
CHEESE MARKET OVERVIEW OF EGYPT
EXECUTIVE SUMMARY
Cheese is an important part of the Egyptian diet and many people eat some
cheese with at least one meal a day. Most cheese is consumed either on its own or
with bread. In 2011, cheese is expected to see retail volume sales growth of 20%,
significantly stronger than the 10% CAGR recorded over the review period. Strong
retail volume sales growth over the review period was driven by on-going population
growth and the traditionally high consumption of cheese in the country. However, the
biggest growth comes from soft cheese. Traditional varieties such as Roumi or white
cheese, which fall under soft cheese, have traditionally been sold unpackaged.
However, in line with other dairy categories such as milk, many of these traditional
varieties are increasingly being sold packaged rather than loose. Not only unit prices
are similar to unpackaged varieties, but many consumers find packaged varieties to be
more hygienic and many retailers such as Spinney’s now sell them packaged in large
amounts as well as smaller sizes, catering most consumers.
Spreadable processed cheese, which is particularly popular amongst families
with children, who tend to eat it at breakfast and lunch, is expected to see a retail
volume sales growth of 3% in 2011. A strong performance in the early months of 2011
is expected to lead companies to continue to launch value-added products and a
variety of new flavors, such as cheddar spread. Spreadable processed cheese is a
relatively mature category within packaged foods, with a relatively high penetration
rates compared to other categories within packaged foods, manufacturers have to
innovate with new flavors in order to gain further growth, particularly in volume terms.
Cheese is milk's leap towards immortality. Cliff Fadiman
104 | Page
Unspreadable processed cheese continued to be one of the smallest subcategories
within the cheese market in Egypt. The reason for this is that the majority of Egyptian
consumers are used to fresh cheeses that are full of flavor. Unspreadable processed
cheese generally has a milder flavor and is more expensive, keeping the majority of the
population from purchasing it. Packaged hard cheese remains the smallest category in
both value and volume terms, as consumers are still more used to buying unpackaged
varieties.
Soft cheese achieved a strong performance during the early months of 2011
and is expected to be the most dynamic category in retail volume and value terms over
the year as a whole, with predicted growth of 33% and 38% respectively. In Egypt, soft
cheese largely consists of white cheese, which forms an important part of the typical
Egyptian diet and it is frequently used as a component of both main courses and
salads. White cheese- like varieties continues to lead the category.
One of the main reasons for the growth of white cheese, and its subsequent
effect on soft cheese as a category, is the fact that many consumers are making the
switch from unpackaged variants (not included in Euromonitor International’s
packaged foods definitions), to packaged varieties. Consumers are increasingly opting
for packaged varieties as they regard them as being of higher quality and appreciate
being able to see information about the products, such as the expiry date and the
nutritional content.
On the other hand, many Egyptians are becoming more sophisticated in their
tastes, moving from soft white cheese to other international varieties, which are
gaining in popularity. For example, Dutch cheeses, including Edam and Gouda, are now
widely available in modern grocery retailers such as Spinneys and Carrefour.
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105 | Page
DOMESTIC PRODUCTION VOLUMES
The per capita cheese production of in Egypt is represented below.
Source: www.portal.euromonitor.com
The per capita cheese production peaked in 2008 amounting to 13.7 kilos. The
following year it amounted to 12.2 kilos. A slight increase was made in 2011 — 12 kilos
per capita.
The table below represents percentage value breakdowns of spreadable
processed cheeses and unprocessed cheeses by type.
Table 48. Spreadable Processed Cheese by Type in Egypt: % Value Breakdown % retail value rsp
Cheese Type Years
2006 2007 2008 2009 2010 2011 Cream Cheese 4.0 4.5 5.0 6.0 6.5 7.0 Reconstituted Cheese 96.0 95.5 95.0 94.0 93.5 93.0 TOTAL 100.0 100.0 100.0 100.0 100.0 100.0
Source: www.portal.euromonitor.com
We can see that the reconstituted cheeses are more preferable than the cream
ones by the Egyptians.
Among the unprocessed cheeses, the most preferable one is Feta cheese with
67% and 65% shares in 2009 and 2010 relatively. Cheddar cheese is in the second place
with 10.5% and 11% in 2009 and 2010 relatively.
2006 2007 2008 2009 2010 2011
World 2.9 3.0 3.0 2.9 2.9 2.9
Egypt 10.1 12.7 13.7 12.2 11.9 12.0
kgGraph 14. Per Capita Production of Cheese in Egypt
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106 | Page
Table 49. Unprocessed Cheese by Type in Egypt: % Value Breakdown
% retail value rsp
Cheese Type Years
2009 2010 Blue Cheese 6.0 6.3 Cheddar 10.5 11.0 Feta 67.0 65.0 Fresco 0.7 0.9 Goat 0.6 0.6 Gouda 8.0 8.5 Labneh 0.4 0.4 Mozzarella 2.0 2.2 Parmesan 0.2 0.3 Ricotta 0.8 0.9 Others 3.8 3.8 TOTAL 100.0 100.0
Source: www.portal.euromonitor.com
The graph below enables to compare the production of cheese and fresh cow’s milk.
Source: www.portal.euromonitor.com
The cheese production volumes in Egypt have not changed dramatically since
2006. Only in 2008, the cheese production volumes increased by up to 10.3%, but the
volumes increased (by 9.5%) in the following year and stayed stable in 2010 as well. In
2011, the volumes increased by 2.7%.
2006 2007 2008 2009 2010 2011
Production of Cheese 733.8 941.8 1039.1 940.2 940.2 966.0
Production of Fresh Cows' Milk 2150.0 3187.3 3211.4 2803.3 2901.6 3033.1
0500
100015002000250030003500
thsd
tons
Graph 15. Production of Fresh Cows' Milk & Cheese in Egypt
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107 | Page
Fresh cows’ milk production peaked in 2008 amounting 3211.4 thousand tons
and decreased by 12.7% in 2009. The following years were more productive for the
sector.
FOOD RETAIL SECTOR AND THE LARGEST CHEESE PRODUCERS
The table below represents the sales of cheese by distribution format.
Table 50. Sales of Cheese by Distribution Format in Egypt % retail value rsp
Distribution Format Years
2006 2007 2008 2009 2010 2011 Store-Based Retailing 100.0 100.0 100.0 100.0 100.0 100.0
*Grocery Retailers 100.0 100.0 100.0 100.0 100.0 100.0 **Supermarkets/Hypermarkets 45.0 45.8 47.3 47.8 48.0 48.5
**Discounters — — — — — — **Small Grocery Retailers 40.8 40.7 39.3 38.5 38.0 37.0
***Convenience Stores — — — — — — ***Independent Small Grocers 40.0 40.0 39.0 38.5 38.0 37.0
***Forecourt Retailers 0.8 0.7 0.3 — — — **Other Grocery Retailers 14.2 13.5 13.4 13.7 14.0 14.5
*Non-Grocery Retailers — — — — — — **Health and Beauty Retailers — — — — — —
**Other Non-Grocery Retailers — — — — — — Non-Store Retailing — — — — — —
*Vending — — — — — — *Home Shopping — — — — — —
*Internet Retailing — — — — — — *Direct Selling — — — — — —
TOTAL 100.0 100.0 100.0 100.0 100.0 100.0 Source: www.portal.euromonitor.com
The table below represents the company shares occupied in cheese and/or dairy production in Egypt.
Table 51. Cheese Company Shares in Egypt
% retail value rsp
Company Years
2006 2007 2008 2009 2010 Best Cheese Co for Dairy Products SAE 15.0 15.1 13.7 13.9 15.4 Royal Friesland Foods NV 8.3 9.9 10.2 10.5 9.9 Middle East Dairy & Foodstuff Co 12.0 11.2 9.1 8.9 9.8 Bel Egypt SAE 8.2 8.3 7.6 7.4 6.6 El Manzala Co 6.4 6.9 7.1 7.3 6.3 Arab Dairy Co 4.1 4.8 5.9 7.3 6.2
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Arabian Food Industry Co (Domty) 1.5 2.4 3.2 4.7 6.0 Katilio Co for Dairy Products 3.9 4.2 5.0 5.6 5.1 Juhayna Food Industries 0.9 1.2 2.9 3.5 3.2 Lactalis, Groupe 1.3 1.9 2.1 2.2 2.0
Misr Octobre Co for Food Industries (Elmisrieen) 0.7 0.8 1.1 1.5 1.8
Bongrain SA 4.8 4.1 3.4 2.2 0.9 Seclam Co 1.2 1.2 1.3 1.4 0.7 Cheese Partners Holland 0.4 0.4 0.6 0.6 0.6 Sze Hing Loong Development Ltd 0.2 0.3 0.4 0.4 0.5 Unibel SA 0.3 0.3 0.4 0.4 0.4 Hochland AG 0.5 0.5 0.4 0.4 0.4 Egyptian International Co for Food Industries 0.3 0.4 0.4 0.4 0.4
International Co for Agro-Industrial Projects 0.2 0.5 0.5 0.4 0.3
Egyptian Co for Advanced Foodstuff Industries (Faragello) 0.2 0.1 0.0 0.1 0.1
Gebrüder Woerle GesmbH 0.1 0.1 0.1 0.1 0.0 Friesland Coberco Dairy Foods Holding NV 0.0 0.0 0.0 0.0 0.0 El Tayeb Dairy 0.3 0.5 0.4 0.4 — Arla Foods Amba 0.7 0.2 — — — Arab Food Industries Co Ltd — — — — — Mashreq Des Produits Laiteriers Borg El Arab — — — — — Others 28.6 24.6 24.4 20.3 23.3 TOTAL 100.0 100.0 100.0 100.0 100.0
Source: www.portal.euromonitor.com
Best Cheese Co for Dairy Products SAE led the cheese category in Egypt with a
15% value share in 2010. The company led the processed cheese category with a 50%
share and the spreadable processed cheese category with a 64% share. Its most
popular brands are Teama and Président, both processed cheese brands.
Foreign players continued to play a leading role in cheese in Egypt in 2011, as
leading manufacturers such as Best Cheese Co for Dairy Products SAE is owned by
French dairy giant Lactalis and second player is Dutch multinational Royal Friesland
Foods NV. Domestic manufacturers are usually more focused on selling unpackaged
varieties, whilst foreign companies have continued to invest in packaged varieties and
selling increasingly more in modern grocery retailers and offering different types of
cheese.
Second-ranked Royal Friesland Foods NV increased its share to 10% in 2010. It
was popular within the unprocessed cheese category, where it held a 14% share in
2010. The company continued to be very active in terms of in- store promotions by
having in- store gondolas offering cheese such as Gouda and Edam. However, the
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109 | Page
company faced tough competition not only from more traditional varieties, but also
from other players who continuously expand their ranges of packaged cheese.
Third-ranked Middle East Dairy & Foodstuff Co saw its value share increase from 9% to
10% within cheese as a whole in 2010. The company continued to be very active
offering more traditional varieties such as feta in brick- like cartons, offering
convenience to consumers.
CONSUMER PREFERENCES
One of the main reasons for the growth of white cheese, and its subsequent
effect on soft cheese as a category, is the fact that many consumers are making the
switch from unpackaged variants (not included in Euromonitor International’s
packaged foods definitions), to packaged varieties. Consumers are increasingly opting
for packaged varieties as they regard them as being of higher quality and appreciate
being able to see information about the products, such as the expiry date and the
nutritional content.
On the other hand, many Egyptians are becoming more sophisticated in their
tastes, moving from soft white cheese to other international varieties, which are
gaining in popularity. For example, Dutch cheeses, including Edam and Gouda, are now
widely available in modern grocery retailers such as Spinneys and Carrefour.
The consumer preferences are best portrayed by the volumes of sales. The
table below represents the sales of cheese by type for 2006-2011.
Table 52. Sales of Cheese by Category in Egypt thsd tons
Production Years
2006 2007 2008 2009 2010 2011 Processed Cheese 25.7 26.5 27.2 28.6 29.8 30.7
Spreadable Processed Cheese 19.5 19.8 20.0 21.0 22.0 22.7 Unspreadable Processed Cheese 6.2 6.7 7.2 7.6 7.8 8.1
Unprocessed Cheese 61.7 66.2 78.5 87.8 105.9 129.5 Hard Cheese 33.7 35.2 36.1 36.8 38.1 39.5 Soft Cheese 28.0 31.0 42.5 51.0 67.8 90.0
Spreadable Unprocessed Cheese — — — — — — Cheese 87.4 92.7 105.8 116.3 135.7 160.3
Source: www.portal.euromonitor.com
Cheese is milk's leap towards immortality. Cliff Fadiman
110 | Page
The demand for unprocessed cheese is higher than the one of the processed
cheese in Egypt. Among the sales of the unprocessed cheese in Egypt, a dominant
place takes hard cheese.
Obviously, the crisis has had a little influence on the budget of the Egyptian
consumers who prefer to have cheese on their tables. This can also be proved by the
graph below.
Source: www.portal.euromonitor.com
PRICES
According to the latest (July 2012) data the average price of fresh local cheese
in Egypt per 0.15 kilo amounts up to USD 0.73.
IMPORTS
Dairy imports are significant with a requirement for Cheddar cheese, mainly for
processing. Import volumes are estimated at 20,000 tons annually. Bulk butter imports
stand at over 30,000 tons annually. The main source of supply is Fonterra, which has a
joint venture selling under the Arab Dairy Company brands. The imports of cheese and
curds in Egypt have increased by almost 22% in 2011 vis-à-vis 2010. The main
exporters are the Netherlands, the USA and New Zealand.
Table 53. Cheese and Curds Imports of Egypt
thsd USD
0.020.040.060.080.0
100.0120.0140.0160.0180.0
2006 2007 2008 2009 2010 2011
thsd
tons
Graph 16. Sales of Cheese in Egypt
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Exporters Imported Value in 2008
Imported Value in 2009
Imported Value in 2010
Imported Value in 2011
World 96377 94245 87811 112102 Netherlands 17670 23390 17582 29152 USA 16161 2022 22589 23515 New Zealand 23998 23565 18451 14230 Ireland 6285 11501 4461 8615 Poland 5528 3969 5661 8263 Australia 6369 6644 4016 7073 Denmark 3873 5404 5429 6730 Saudi Arabia 3359 1463 1394 2711 Italy 1324 1405 1311 1527 Syrian Arab Republic 11 1415 1063 1511
Ukraine 0 0 226 1041 Iceland 0 0 0 1027 Turkey 381 441 533 985 UK 1407 2280 748 890 Germany 1543 2151 1152 874 Argentina 227 1501 316 784 France 624 1200 441 744 Switzerland 490 270 419 560 Morocco 619 20 194 468 Tunisia 0 0 0 354 Austria 137 64 530 321 Jordan 6 0 177 319
Source: www.trademap.org
EXPORTS
The export volumes of cheese and curds in Egypt have been constantly
increasing since 2008: in 2011 vis-à-vis 2008, the volumes have almost doubled. The
major importers are Saudi Arabia, Iraq, Libya and Yemen.
Table 54. Cheese and Curds Exports of Egypt thsd USD
Importers Exported Value in 2008
Exported Value in
2009
Exported Value in
2010
Exported Value in
2011 World 295789 424842 471689 482555
Saudi Arabia 78315 119086 123319 135825 Iraq 59162 64893 77915 75310 Libya 39865 52390 68314 48066 Yemen 20016 29984 43709 47049
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Jordan 14890 22048 22976 33803 Lebanon 16721 17998 19574 24378 Oman 15090 40169 26533 22292 UAE 8098 11081 15225 18443 Kuwait 10129 12384 16019 16762 Syrian Arab Republic 7130 9790 16178 16226
Haiti 2437 3268 5491 6502 Qatar 1561 3847 5309 5777 Eritrea 1863 3325 3906 4849 Morocco 2063 4097 6816 4337 Mauritius 1382 2230 2638 3343 Palestine 5518 6985 3544 2800 USA 661 1626 1781 2078 Viet Nam 348 4284 1761 1733 Bahrain 1199 1152 1112 1622 Israel 450 1572 3850 1619 Algeria 0 623 0 1598 Area Nes 0 311 412 1405
Source: www.trademap.org
PROSPECTS
The cheese category is expected to see continued robust retail volume and
constant value growth over the forecast period. Traditionally high consumption of
cheese in the country, allied to the broader variety of products available and increased
product innovation, will all contribute to this performance.
Retail volume sales are expected to rise at a CAGR of 13% over the forecast
period. This growth is expected to come mainly as a result of consumers increasingly
switching more to packaged varieties as they are considered more hygienic and the
perception that they can be more expensive by some consumers goes away. This is
particularly in the case of soft cheese, which is more heavily by Egyptian consumers.
The development of the retail environment in Egypt is expected to have a
positive effect on cheese sales in the country as outlets in the growing
supermarkets/hypermarkets channel, which accounts for the largest share of sales,
have the space to accommodate larger fridges and therefore offer a greater variety of
cheese. The increased display of these products is likely to boost sales slightly and may
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see an increase in the number of suppliers selling their products through modern
retailing.
The convenience offered by packaged varieties will continue to be one of the
key factors towards the success for the switch to packaged varieties. Manufacturers
have increasingly made huge efforts in recent years in order to get consumers to buy
packaged varieties, increasingly offering these options more readily available through
most grocery retailing outlets. Although at first it was grounded on the fact that it was
more hygienic, a topic that it is increasingly gathering more importance among
consumers, convenience is increasingly playing an important part from many
consumers living in urban centers. Moreover, packaging opens the gates for
manufacturers to increasingly brand their products in order to gain customer loyalty.
Over the forecast period, added value in cheese will increasingly become much more
of an important factor, and packaging and labeling of cheese will enable manufacturers
to launch products with added value, such as reduction of fat or the addition or
vitamins and minerals, which Egyptians will be paying more attention to.
The table below shows the forecast sales of cheese for Egypt in terms of
volume.
Table 55. Forecast Sales of Cheese by Category in Egypt thsd tons
Production Years
2012 2013 2014 2015 2016 Processed Cheese 31.8 33.0 33.8 34.8 35.8
Spreadable Processed Cheese 23.5 24.3 25.0 25.7 26.5 Unspreadable Processed Cheese 8.4 8.6 8.8 9.1 9.3
Unprocessed Cheese 153.6 172.8 199.9 221.5 258.1 Hard Cheese 41.1 42.8 44.9 47.1 48.8 Soft Cheese 112.5 130.0 155.0 174.4 209.2
Spreadable Unprocessed Cheese — — — — — Cheese 185.4 205.8 233.7 256.2 293.9
Source: www.portal.euromonitor.com
The 4-year lag of time during 2012-2016 is predicted to increase the sales of
cheese by up to 58.5%. Processed cheese sales will increase by 12.6%, and
unprocessed cheese — by 68%.
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Unit prices in the cheese category are expected to increase by 2% in 2011, due
to the rising price of milk and other raw materials, which are mostly imported from
abroad.
REFERENCES
www.portal.euromonitor.com
http://www.numbeo.com/food-prices/country_result.jsp?country=Egypt
www.trademap.org
http://www.numbeo.com/food-prices/country_result.jsp?country=Egypt
Cheese & Cheese Product Labeling Guidelines
NAME OF PRODUCT:
1. “Standard of identity” name or
2. The common or usual name of the food; or
3. An appropriately descriptive term or fanciful name.
The standard of identity must be used if the cheese fits the standard.
Examples:
Standard of Identity Names:
Cheddar Cheese, Monterey Jack Cheese, Low-Moisture Part-Skim Mozzarella Cheese
Common or Usual Names
String Cheese Low-Moisture, Part-Skim Mozzarella Cheese
Farmers Cheese A Semisoft Part Skim Cheese
Farmers Pepper Cheese A Semisoft Part Skim Cheese with Jalapeños
Descriptive Names
Co-Jack A Blend of Colby and Monterey Jack Cheese
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Or Co-Jack A Semisoft Cheese
Spiced or flavored standardized cheeses should be labeled with the spice at the beginning or the end of the cheese name. The spice or flavor name must not be between the cheese variety and the word “cheese”.
Examples:
Caraway Colby Cheese, Salami Cheddar Cheese, Colby Cheese with Caraway, Cheddar Cheese with Salami.
(The word cheese must be included in the name of the product)
The name of the product must be in a type size that is 50 % the height of the largest
print on the label and generally parallel to the base of the package.
Pasteurized Process Cheese, Cheese Foods, and Cheese Spreads: All words in the
name need to be given equal prominence. You cannot make the word cheese or the
variety of the cheese used stand out more than the rest of the name. Any optional
ingredients that are required to be declared on the label should not be given greater
prominence than the name of the food.
NET QUANTITY OF CONTENTS
Net quantity of contents must be located on the front of the package (the principal
display panel). This includes random weight packages.
INGREDIENTS STATEMENT
Ingredients must be listed in descending order of predominance by weight (most
to least).
Table 56. Common or Usual Names for Typical Ingredients Used in Dairy Products
Ingredient Common or Usual Name
skim milk, concentrated skim milk, reconstituted skim, and nonfat dry milk "skim milk or "nonfat milk" milk
milk, concentrated milk, reconstituted milk, and dry whole milk "milk"
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bacteria culture "cultured ____" (the blank is filled in with the name of the milk used)
sweet cream buttermilk, concentrated sweet cream buttermilk, reconstituted sweet cream buttermilk and dried sweet cream buttermilk
"buttermilk"
whey, concentrated whey, reconstituted whey and dried whey "whey"
cream, reconstituted cream, dried cream and plastic cream and concentrated milk fat
"cream"
butter oil and anhydrous butterfat "butterfat" enzymes of animal, plant and microbial origin "enzyme"
cheese whey, concentrated cheese whey and dried cheese whey "whey"
Cheddar cheese, washed curd cheese, Colby cheese granular cheese and any mixture of two or more
"American cheese"
All sub-ingredients must be listed. Do not use extra words in the ingredient statement
e.g. diced (as in diced peppers), whole (as in whole milk), and fresh (as in fresh basil)
All added colors result in an artificially colored food. No added color can be declared as
“food” or “natural” color.
Cheese cannot be called “natural” if it has annatto color.
Food ingredients such as garlic, onion and celery cannot be included under the
collective term “spice.” They must be listed individually.
“Herb” and “herbs” cannot be used as collective terms in an ingredient statement. Use
the word “spice” or list all spices by name.
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Glossary of Commonly Used Cheese Making Terms Acid - a slightly sour flavor
Ammoniated - some overripe cheeses (especially soft ones like Camembert and Brie) develop this Ammonia smell (similar to bleach).
Aroma - the smell of a particular cheese, from lightly aromatic to ferociously overpowering. Though not always, strong smelling cheeses are usually strongly flavored.
Barnyardy - a term usually used to describe the taste and aroma of hay/straw, the best example of this is probably goat's cheese.
Bleu - French name for blue veined cheeses.
Bloomy or Flowery Rind - A light 'down' of mould, a result of the cheese being cultured with a light spray of penicillium candidate spores.
Brushed by Machine or Hand - the process of brushing the rind of naturally rinded cheeses for moisture and flavor while they are maturing.
Casein - the milk protein that solidifies once coagulation (setting) takes place.
Cheddaring - technique of stacking and turning curds at the bottom of the vat every 10 -15 minutes for 1½ hours.
Close Smooth - unblemished texture, free of holes or cracks.
Cooked - used to describe hard cheeses, the curd is cooked by being heated at a high temperature and then pressed to extract the maximum amount of whey.
Creamy - yielding texture and rich taste.
Curdling - coagulation of the milk by introduction of rennet.
Crumbly - condition of cheese that breaks away when cut - parmesan, feta & blues.
Dry Matter - what remains once moisture is removed - Parmesan is largely dry matter, Camembert is still 50% moisture.
Earthy - distinctive characteristic used to describe full flavored cheeses usually with musty, natural rinds.
Fat Content - indicated on the packaging. Ranging from 4% to 75% but on the average about 33%.
Fresh Cheese - unripened cheese e.g. Cottage, Ricotta Cream Cheese and Curd.
Gruyere - one of the best known Swiss cheeses. Also general name for large French cheeses, e.g.: Beaufort, Emmental, Comte.
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118 | Page
Hard - used to describe cooked cheeses with a low moisture content, e.g. Parmesan or Cheddar
Holes or Eyes - caused by cultured bacterial activity, these round holes give distinctive character to Gruyere and other Swiss types.
Lactic - milky aroma, and sometimes flavor of certain cheeses (tart and citrus tang).
Micro-Organisms - yeasts and fermenters naturally present in milk and milk curd.
Moulds - use of penicillium candidate results in exterior white mould, while penicillium glaucum or roqueforti create internal moulds used to create blue vein.
Mushroomy - used to describe the flavor and aroma of soft and semi-softs, e.g. Camembert and Brie.
Nutty - used to describe a character in hard cheese, usually Swiss and Dutch. (hazelnut flavour and aroma).
Open - cheese with openings or holes in it.
Paraffin - wax protective outer coating, e.g. Red wax on Edam.
Pasteurisation - heating of milk to sterilize and kill bacteria.
Paste - interior of a cheese.
Pronounced - descriptive term for dominant flavor or aroma in a cheese.
Piquant - sharp tasting.
Rennet - substance which contains a milk coagulating enzyme. Found in calves' stomachs or as a vegetable extract.
Rind Natural or Artificial - external surface of cheese designed to protect the paste, allow it to ripen and develop to the desired flavor.
Skimmed Milk - milk from which part or all cream is removed.
Starter - bacterial culture which produces lactic acid - tastes like yoghurt.
Supple - used to describe the texture of cheese, firm but not hard, pliable and resilient.
Tangy - sharp, distinctive, flavorsome.
Texture - largely dependent on moisture content. Harder cheeses have less moisture, softer cheeses more.
Washed Rind Cheeses - describes a process of regular rind washing of cheese while being ripened, with washes as varied as brine to brandy. This keeps the cheese moist and supple and contributes to the final flavor of the cheese. Some of the strongest smelling and flavored cheeses have washed rinds.
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ANNEX Figure 1. Cheese pricing by categories, brands, company names, outlets and package sizes in
Russia for January and June, 2011-2012
Pricing Date Categories Brands Company
Name Outlets Pack Size
Price (RUB)7
Jan-11 Reduced Fat Cheese Fetaki Active
Käserei Champignon
Hofmeister KG Supermarket/hypermarket 500
g 146.0
Jan-11 Reduced Fat Cheese Frico Light Royal Friesland
Foods NV Supermarket/hypermarket 100 g 62.0
Jan-11 Reduced Fat Cheese Frico Light 12% Royal Friesland
Foods NV Supermarket/hypermarket 1 kg 519.0
Jan-11 Reduced Fat Cheese Oltermanni 29% Valio AO Supermarket/hypermarket 1 kg 259.0
Jan-11 Reduced Fat Cheese Oltermanni 29% Valio AO Supermarket/hypermarket 500
g 147.0
Jan-11 Reduced Fat Cheese Président Camembert Lactalis Vostok
ZAO Supermarket/hypermarket 250 g 270.0
Jan-11 Reduced Fat Cheese Président Legky Lactalis OOO Supermarket/hypermarket 140
g 47.0
Jan-11 Reduced Fat Cheese Viola Valio AO Internet retailing 200
g 40.0
Jan-11 Reduced Fat Cheese Viola Valio AO Supermarket/hypermarket 200
g 48.0
Jun-12 Spreadable Processed
Cheese Druzhba Karat ZAO Hypermarket 150
g 39.9
Jun-12 Spreadable Processed
Cheese Druzhba Karat ZAO Supermarket 200
g 54.4
Jun-12 Spreadable Processed
Cheese Druzhba RostAgroExport
ZAO Hypermarket 400 g 68.9
Jun-12 Spreadable Processed
Cheese
Hochland Cream/Ham/Mushrooms
Hochland Russland OOO Internet retailing 200
g 70.9
Jun-12 Spreadable Processed
Cheese
Hochland Slivochny/Ham/Mushrooms
Hochland Russland OOO Hypermarket 400
g 109.0
Jun-12 Spreadable Processed
Cheese
Hochland Slivochny/Ham/Mushrooms
Hochland Russland OOO Supermarket 140
g 41.1
Jun-12 Spreadable Processed
Hochland Slivochny/Ham/Mushrooms
Hochland Russland OOO Supermarket 200
g 59.9
7 $ 1 ≈ RUB 30.7
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120 | Page
Cheese
Jun-12 Spreadable Processed
Cheese
Hochland Slivochny/Ham/Mushrooms
Hochland Russland OOO Supermarket 50 g 12.5
Jun-12 Spreadable Processed
Cheese Karat Karat ZAO Supermarket 200
g 58.9
Jun-12 Spreadable Processed
Cheese Karat Druzhba Karat ZAO Internet retailing 400
g 114.6
Jun-12 Spreadable Processed
Cheese Karat Druzhba Karat ZAO Supermarket 400
g 99.9
Jun-12 Spreadable Processed
Cheese Karat Yantar Karat ZAO Hypermarket 400
g 88.5
Jun-12 Spreadable Processed
Cheese Karat Yantar Karat ZAO Supermarket 400
g 109.0
Jun-12 Spreadable Processed
Cheese Korall RostAgroExport
ZAO Supermarket 200 g 64.9
Jun-12 Spreadable Processed
Cheese Krasnaya Tsena X5 Retail Group Supermarket 400
g 68.8
Jun-12 Spreadable Processed
Cheese President Slivochniy Lactalis Vostok
ZAO Hypermarket 400 g 93.7
Jun-12 Spreadable Processed
Cheese President Slivochny Lactalis Vostok
ZAO Hypermarket 400 g 91.9
Jun-12 Spreadable Processed
Cheese President Slivochny Lactalis Vostok
ZAO Supermarket 200 g 52.4
Jun-12 Spreadable Processed
Cheese
Président Garlik/Ham/Maasdam/Cream
Lactalis Vostok ZAO Internet retailing 200
g 64.0
Jun-12 Spreadable Processed
Cheese Pyat' Plusov X5 Retail Group Supermarket 180
g 37.9
Jun-12 Spreadable Processed
Cheese Veseliy Molochnik Wimm Bill
Dann OAO Hypermarket 190 g 49.9
Jun-12 Spreadable Processed
Cheese Veseliy Molochnik Wimm Bill
Dann OAO Supermarket 190 g 45.9
Jun-12 Spreadable Processed
Cheese Vesely Molochnik
Wimm-Bill-Dann Produkty
Pitania OAO Internet retailing 400
g 142.5
Jun-12 Spreadable Processed Viola Valio OOO Hypermarket 200
g 58.2
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Cheese
Jun-12 Spreadable Processed
Cheese Viola Valio OOO Supermarket 200
g 67.5
Jun-12 Spreadable Processed
Cheese Viola Valio OOO Supermarket 400
g 102.0
Jun-12 Spreadable Processed
Cheese Viola
Valio St Petersburg
ZAO Hypermarket 200
g 58.9
Jun-12 Spreadable Processed
Cheese Viola
Valio St Petersburg
ZAO Internet retailing 200
g 78.0
Jun-12 Spreadable Processed
Cheese Viola
Valio St Petersburg
ZAO Supermarket 200
g 57.1
Jun-12 Spreadable Processed
Cheese Viola 60% Valio OOO Hypermarket 100
g 31.3
Jun-12 Spreadable Processed
Cheese Viola 60% Valio OOO Internet retailing 100
g 47.1
Jun-12 Spreadable Processed
Cheese Viola 60% Valio OOO Supermarket 100
g 36.9
Jun-12 Spreadable Processed
Cheese Viola 60% Valio OOO Supermarket 200
g 77.0
Jun-12 Spreadable Processed
Cheese Yantar Karat ZAO Hypermarket 150
g 40.9
Jun-12 Spreadable Processed
Cheese Yantar Karat ZAO Supermarket 100
g 13.5
Jun-12 Unspreadable
Processed Cheese
Gorod Syra Omsky Zavod Syrov Supermarket 1 kg 63.4
Jun-12 Unspreadable
Processed Cheese
Hochland Assorti Hochland Russland OOO Hypermarket 140
g 41.4
Jun-12 Unspreadable
Processed Cheese
Hochland Assorti Hochland Russland OOO Supermarket 140
g 62.9
Jun-12 Unspreadable
Processed Cheese
Hochland Cheesburger Hochland Russland OOO Hypermarket 150
g 41.4
Jun-12 Unspreadable
Processed Cheese
Hochland Cheesburger Hochland Russland OOO Internet retailing 150
g 64.9
Jun-12 Unspreadable Processed Hochland Cheesburger Hochland
Russland OOO Supermarket 150 g 65.9
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Cheese
Jun-12 Unspreadable
Processed Cheese
Hochland Cream/Ham/Mushrooms/Onion
Hochland Russland OOO Hypermarket 50 g 11.8
Jun-12 Unspreadable
Processed Cheese
Hochland Segment Hochland Russland OOO Hypermarket 140
g 39.9
Jun-12 Unspreadable
Processed Cheese
Hochland Segment Hochland Russland OOO Internet retailing 140
g 62.3
Jun-12 Unspreadable
Processed Cheese
Hochland Segment Hochland Russland OOO Supermarket 140
g 62.9
Jun-12 Unspreadable
Processed Cheese
Hochland v narezke vetchina Hochland Russland OOO Hypermarket 150
g 43.9
Jun-12 Unspreadable
Processed Cheese
Karat Druzhba Karat ZAO Hypermarket 150 g 37.2
Jun-12 Unspreadable
Processed Cheese
Karat Druzhba Karat ZAO Hypermarket 90 g 16.0
Jun-12 Unspreadable
Processed Cheese
Karat Druzhba Karat ZAO Internet retailing 90 g 24.7
Jun-12 Unspreadable
Processed Cheese
Karat Druzhba Karat ZAO Supermarket 90 g 23.0
Jun-12 Unspreadable
Processed Cheese
Karat Volna Karat ZAO Hypermarket 90 g 13.1
Jun-12 Unspreadable
Processed Cheese
Karat Volna Karat ZAO Supermarket 90 g 23.0
Jun-12 Unspreadable
Processed Cheese
Karat Yantar Karat ZAO Hypermarket 90 g 16.0
Jun-12 Unspreadable
Processed Cheese
Karat Yantar Karat ZAO Supermarket 150 g 51.9
Jun-12 Unspreadable
Processed Cheese
Kolbasny Karat ZAO Internet retailing 600 g 152.1
Jun-12 Unspreadable
Processed Cheese
Kolbasny Karat ZAO Supermarket 1 kg 209.0
Jun-12 Unspreadable
Processed Cheese
President Master Buterbroda Lactalis Vostok ZAO Supermarket 150
g 45.9
Jun-12 Unspreadable Processed President Slivochniy Lactalis Vostok
ZAO Hypermarket 150 g 43.4
Cheese is milk's leap towards immortality. Cliff Fadiman
123 | Page
Cheese
Jun-12 Unspreadable
Processed Cheese
Président Legkiy Lactalis Vostok ZAO Hypermarket 140
g 41.4
Jun-12 Unspreadable
Processed Cheese
Président Legkiy Lactalis Vostok ZAO Internet retailing 140
g 57.6
Jun-12 Unspreadable
Processed Cheese
Président Legkiy Lactalis Vostok ZAO Supermarket 140
g 60.9
Jun-12 Unspreadable
Processed Cheese
Président Master Buterbroda Lactalis Vostok ZAO Internet retailing 150
g 57.6
Jun-12 Unspreadable
Processed Cheese
Président Master Buterbroda Lactalis Vostok ZAO Supermarket 150
g 49.2
Jun-12 Unspreadable
Processed Cheese
Président Segment Ham/Mushrooms/Cream/Assorti
Lactalis Vostok ZAO Hypermarket 140
g 41.4
Jun-12 Unspreadable
Processed Cheese
Président Segment Ham/Mushrooms/Cream/Assorti
Lactalis Vostok ZAO Internet retailing 280
g 98.6
Jun-12 Unspreadable
Processed Cheese
Président Segment Ham/Mushrooms/Cream/Assorti
Lactalis Vostok ZAO Supermarket 140
g 41.0
Jun-12 Unspreadable
Processed Cheese
Svalia Gurman Pieno Zvaigdes JSC Internet retailing 180
g 107.6
Jun-12 Unspreadable
Processed Cheese
Viola Valio OOO Hypermarket 150 g 44.8
Jun-12 Unspreadable
Processed Cheese
Viola Valio OOO Internet retailing 200 g 64.6
Jun-12 Unspreadable
Processed Cheese
Viola Valio OOO Supermarket 150 g 42.5
Jun-12 Unspreadable
Processed Cheese
Viola Valio St
Petersburg ZAO
Internet retailing 150 g 60.0
Jun-12 Unspreadable
Processed Cheese
Viola Segment Valio OOO Hypermarket 130 g 40.8
Jun-12 Unspreadable
Processed Cheese
Viola Segment Valio OOO Internet retailing 130 g 47.9
Jun-12 Packaged Hard Cheese Anchor Edam Fonterra Ltd Internet retailing 250
g 108.5
Jun-12 Packaged Hard Cheese Anchor Edam Fonterra Ltd Supermarket 250
g 119.0
Jun-12 Packaged Anchor Gauda Fonterra Ltd Internet retailing 250 108.7
Cheese is milk's leap towards immortality. Cliff Fadiman
124 | Page
Hard Cheese g
Jun-12 Packaged Hard Cheese Anchor Gauda Fonterra Ltd Supermarket 250
g 119.0
Jun-12 Packaged Hard Cheese Arla Domashny Arla Foods
Amba Hypermarket 400 g 159.0
Jun-12 Packaged Hard Cheese Arla Natura Maasdam Arla Foods
Artis Internet retailing 300 g 192.2
Jun-12 Packaged Hard Cheese Arla Natura Slivochniy Arla Foods
Artis Hypermarket 150 g 53.1
Jun-12 Packaged Hard Cheese Arla Natura Slivochniy Arla Foods
Artis Supermarket 150 g 99.9
Jun-12 Packaged Hard Cheese Dziugas Tradition Pic-Logistica
OOO Hypermarket 170 g 81.4
Jun-12 Packaged Hard Cheese Fol Epi Bongrain
Group Internet retailing 150 g 312.4
Jun-12 Packaged Hard Cheese Fol Epi Bongrain
Group Supermarket 150 g 329.0
Jun-12 Packaged Hard Cheese Fol Epi Light Bongrain
Group Internet retailing 150 g 297.2
Jun-12 Packaged Hard Cheese Frico Gauda Royal Friesland
Foods NV Internet retailing 150 g 98.7
Jun-12 Packaged Hard Cheese Frico Maasdam Campina OOO Internet retailing 150
g 62.9
Jun-12 Packaged Hard Cheese Frico Maasdam Campina OOO Supermarket 150
g 69.0
Jun-12 Packaged Hard Cheese Frico Maasdam Royal Friesland
Foods NV Internet retailing 150 g 99.9
Jun-12 Packaged Hard Cheese Granfor Edam
Wimm-Bill-Dann Produkty
Pitania OAO Internet retailing 150
g 73.7
Jun-12 Packaged Hard Cheese Granfor Gauda Pir-Pak OOO Internet retailing 150
g 94.0
Jun-12 Packaged Hard Cheese Granfor Gauda
Wimm-Bill-Dann Produkty
Pitania OAO Internet retailing 150
g 73.9
Jun-12 Packaged Hard Cheese Hermis Rossiyskiy TD Hermis ZAO Internet retailing 200
g 99.8
Jun-12 Packaged Hard Cheese Hermis Tilziter TD Hermis ZAO Internet retailing 200
g 102.5
Jun-12 Packaged Hard Cheese Kazhdiy Den Gollandskiy Auchan OOO Hypermarket 350
g 96.5
Jun-12 Packaged Hard Cheese Kazhdiy Den Poshekhonskiy Auchan OOO Hypermarket 150
g 44.4
Jun-12 Packaged Hard Cheese Laime Rossijsky Syr Valkishko Peine
AO Supermarket 150 g 70.4
Jun-12 Packaged Hard Cheese Lamber
Wimm-Bill-Dann Produkty
Pitania OAO Hypermarket 230
g 88.9
Jun-12 Packaged Hard Cheese Lamber
Wimm-Bill-Dann Produkty
Pitania OAO Supermarket 1 kg 337.6
Cheese is milk's leap towards immortality. Cliff Fadiman
125 | Page
Jun-12 Packaged Hard Cheese Lamber Tilziter
Wimm-Bill-Dann Produkty
Pitania OAO Supermarket 150
g 90.9
Jun-12 Packaged Hard Cheese Margor Fromages Emmental Margot
Fromages SA Supermarket 200 g 267.0
Jun-12 Packaged Hard Cheese Oltermanni 17%
Valio St Petersburg
ZAO Supermarket 1 kg 398.9
Jun-12 Packaged Hard Cheese Oltermanni 17%
Valio St Petersburg
ZAO Supermarket 150
g 84.4
Jun-12 Packaged Hard Cheese Oltermanni 29% Valio OOO Supermarket 150
g 87.5
Jun-12 Packaged Hard Cheese Oltermanni 29%
Valio St Petersburg
ZAO Hypermarket 500
g 189.0
Jun-12 Packaged Hard Cheese Oltermanni 29%
Valio St Petersburg
ZAO Supermarket 150
g 70.4
Jun-12 Packaged Hard Cheese Oltermanni 46%
Valio St Petersburg
ZAO Internet retailing 150
g 84.0
Jun-12 Packaged Hard Cheese Oltermanni 55%
Valio St Petersburg
ZAO Internet retailing 150
g 86.0
Jun-12 Packaged Hard Cheese Oltermanni 55%
Valio St Petersburg
ZAO Internet retailing 500
g 225.0
Jun-12 Packaged Hard Cheese Oltermanni bez lactozy Valio St
Petersburg Oy Supermarket 500 g 169.0
Jun-12 Packaged Hard Cheese President Emmental Lactalis Vostok
ZAO Hypermarket 250 g 174.9
Jun-12 Packaged Hard Cheese Svalia Pieno
Zvaigzdes JSC Hypermarket 150 g 56.9
Jun-12 Packaged Hard Cheese Svalia Pieno
Zvaigzdes JSC Supermarket 200 g 109.0
Jun-12 Packaged Hard Cheese Svalia Pieno
Zvaigzdes JSC Supermarket 500 g 411.0
Jun-12 Packaged Hard Cheese Svalia 45% Pieno
Zvaigzdes JSC Internet retailing 150 g 101.0
Jun-12 Packaged Hard Cheese Svalia Baltija v Narezke Pieno
Zvaigzdes JSC Hypermarket 200 g 68.4
Jun-12 Packaged Hard Cheese Svalia Baltija v Narezke Pieno
Zvaigzdes JSC Supermarket 200 g 86.9
Jun-12 Packaged Hard Cheese Svalia Edam Pieno
Zvaigzdes JSC Supermarket 200 g 87.9
Jun-12 Packaged Hard Cheese Svalia Gauda Pieno Zvaigdes
JSC Internet retailing 200 g 108.2
Jun-12 Packaged Hard Cheese Svalia Gouda Pieno
Zvaigzdes JSC Supermarket 200 g 92.4
Jun-12 Packaged Svalia Oltermani Light Pieno Hypermarket 150 53.0
Cheese is milk's leap towards immortality. Cliff Fadiman
126 | Page
Hard Cheese Zvaigzdes JSC g
Jun-12 Packaged Hard Cheese Svalia Oltermani Light Pieno
Zvaigzdes JSC Supermarket 150 g 87.9
Jun-12 Packaged Hard Cheese Valio Atleet Light Valio OOO Internet retailing 150
g 75.0
Jun-12 Packaged Hard Cheese Valio Atleet Light Valio OOO Supermarket 150
g 77.9
Jun-12 Packaged Hard Cheese Valio Emmental Valio AO Internet retailing 150
g 95.0
Jun-12 Packaged Hard Cheese Valio Emmental Valio AO Supermarket 150
g 68.9
Jun-12 Packaged Hard Cheese Valio Emmental Valio OOO Hypermarket 150
g 61.5
Jun-12 Packaged Hard Cheese Valio Emmental Valio OOO Internet retailing 150
g 80.0
Jun-12 Packaged Hard Cheese Valio Emmental Valio OOO Supermarket 150
g 75.9
Jun-12 Packaged Hard Cheese Valio Polar 5% Valio OOO Supermarket 300
g 204.0
Jun-12 Unpackaged Hard Cheese Arla Natura Light Arla Foods
Artis Internet retailing 150 g 129.6
Jun-12 Unpackaged Hard Cheese Arla Natura Slivochniy 38% Arla Foods
Artis Hypermarket 400 g 145.6
Jun-12 Unpackaged Hard Cheese Arla Natura Slivochniy 38% Arla Foods
Artis Supermarket 1 kg 489.0
Jun-12 Unpackaged Hard Cheese Fol Epi Bongrain
Group Supermarket 1 kg 1,359.0
Jun-12 Unpackaged Hard Cheese Gollandskiy
Ostankinsky Molkombinat
OAO Supermarket 1 kg 379.0
Jun-12 Unpackaged Hard Cheese Kaserei Innstolz Kaserei Roinen
GmbH Supermarket 1 kg 365.9
Jun-12 Unpackaged Hard Cheese Lamber
Wimm-Bill-Dann Produkty
Pitania OAO Supermarket 1 kg 419.0
Jun-12 Unpackaged Hard Cheese Oltermanni 17% Valio OOO Hypermarket 250
g 82.4
Jun-12 Unpackaged Hard Cheese Oltermanni 29% Valio OOO Hypermarket 500
g 175.8
Jun-12 Unpackaged Hard Cheese Oltermanni 29% Valio OOO Supermarket 250
g 123.5
Jun-12 Unpackaged Hard Cheese President Emmental Lactalis Vostok
ZAO Hypermarket 1 kg 399.0
Jun-12 Unpackaged Hard Cheese President Maasdam Lactalis Vostok
ZAO Supermarket 1 kg 419.0
Jun-12 Unpackaged Hard Cheese President Madrigal Lactalis
Vaostok ZAO Supermarket 1 kg 704.0
Jun-12 Unpackaged Hard Cheese President Madrigal Lactalis Vostok
ZAO Supermarket 1 kg 869.0
Jun-12 Unpackaged Hard Cheese Président Edam Lactalis Vostok
ZAO Supermarket 1 kg 671.0
Cheese is milk's leap towards immortality. Cliff Fadiman
127 | Page
Jun-12 Unpackaged Hard Cheese Rokiskio Tverdy Rokiskio Suris
AB Hypermarket 1 kg 403.4
Jun-12 Unpackaged Hard Cheese Rokiskio Tverdy Rokiskio Suris
AB Supermarket 1 kg 403.4
Jun-12 Unpackaged Hard Cheese Svalia Pieno Zvaigdes
JSC Supermarket 1 kg 411.0
Jun-12 Unpackaged Hard Cheese Svalia 45% Pieno
Žvaigždes AB Supermarket 350 g 135.7
Jun-12 Unpackaged Hard Cheese Svalia Gildija Gonda Pieno
Zvaigzdes JSC Hypermarket 350 g 134.0
Jun-12 Soft Cheese Adigeyskiy TK Sir Staroduskiy Supermarket 1 kg 349.0
Jun-12 Soft Cheese Almette Hochland GmbH Supermarket 150
g 64.4
Jun-12 Soft Cheese Apetina Classic Arla Foods amba Supermarket 200
g 125.4
Jun-12 Soft Cheese Apetina Feta ARla Foods amba Hypermarket 500
g 129.0
Jun-12 Soft Cheese Apetina Feta ARla Foods amba Internet retailing 500
g 174.0
Jun-12 Soft Cheese Apetina Light Arla Foods AB Supermarket 200 g 40.7
Jun-12 Soft Cheese Brie Hochland Russland OOO Internet retailing 130
g 100.9
Jun-12 Soft Cheese Castello Brie Arla Foods Artis Hypermarket 125
g 84.1
Jun-12 Soft Cheese Castello Brie Arla Foods Artis Supermarket 125
g 119.0
Jun-12 Soft Cheese Castello Brie Arla Foods amba Supermarket 125
g 105.4
Jun-12 Soft Cheese Castello Danish Blue Arla Foods Artis Internet retailing 100
g 90.8
Jun-12 Soft Cheese Castello Danish Blue Cheese Arla Foods AB Hypermarket 100 g 66.9
Jun-12 Soft Cheese Chechil Spagetti Tambovskiy OOO Supermarket 150
g 109.0
Jun-12 Soft Cheese Dobriana Rokfor Milkyland - Ukraina DP Internet retailing 100
g 227.4
Jun-12 Soft Cheese Dorblu Käserei
Champignon Hofmeister KG
Hypermarket 100 g 64.2
Jun-12 Soft Cheese Dorblu Käserei
Champignon Hofmeister KG
Internet retailing 100 g 65.9
Jun-12 Soft Cheese Dorblu Käserei
Champignon Hofmeister KG
Supermarket 100 g 62.7
Jun-12 Soft Cheese Fetaki Käserei
Champignon Hofmeister KG
Supermarket 500 g 156.0
Jun-12 Soft Cheese Karat Delissir Karat ZAO Internet retailing 180 85.5
Cheese is milk's leap towards immortality. Cliff Fadiman
128 | Page
g
Jun-12 Soft Cheese Kaserei Brie Kaserei Hypermarket 125 g 99.9
Jun-12 Soft Cheese Kaserei Brie Kaserei Internet retailing 125 g 145.0
Jun-12 Soft Cheese Locatelli Mozzarella Lactalis Vostok ZAO Supermarket 150
g 219.0
Jun-12 Soft Cheese Parizhskaya Buryonka Fleshar SAS Hypermarket 500 g 75.4
Jun-12 Soft Cheese Parizhskaya Buryonka Fleshar SAS Supermarket 500 g 94.4
Jun-12 Soft Cheese President Brynza Lactalis Vostok ZAO Hypermarket 500
g 162.9
Jun-12 Soft Cheese President Camambert Lactalis Vostok ZAO Hypermarket 125
g 114.0
Jun-12 Soft Cheese President Camambert Lactalis Vostok ZAO Supermarket 120
g 82.4
Jun-12 Soft Cheese President Rondele Lactalis Vostok ZAO Supermarket 80 g 121.4
Jun-12 Soft Cheese Président Brie Lactalis Vostok ZAO Hypermarket 180
g 155.9
Jun-12 Soft Cheese Président Brie Lactalis Vostok ZAO Internet retailing 125
g 107.4
Jun-12 Soft Cheese Président Brie Lactalis Vostok ZAO Supermarket 200
g 249.0
Jun-12 Soft Cheese Président Camembert Lactalis Vostok ZAO Internet retailing 250
g 256.2
Jun-12 Soft Cheese Président Camembert Lactalis Vostok ZAO Supermarket 120
g 119.0
Jun-12 Soft Cheese Sirtaki OOO Nevskie Syry Internet retailing 500
g 138.0
Jun-12 Soft Cheese Sirtaki OOO Nevskie Syry Supermarket 200
g 52.4
Jun-12 Soft Cheese Umalat Adigeyskiy Sevsky Maslodel OAO Internet retailing 370
g 183.2
Jun-12 Soft Cheese Umalat Brynza Sevsky Maslodel OAO Internet retailing 250
g 148.4
Jun-12 Soft Cheese Umalat Mozarella Sevsky Maslodel OAO Internet retailing 125
g 118.7
Jun-12 Soft Cheese Violette Karat ZAO Supermarket 140 g 45.9
Jun-12 Spreadable
Unprocessed Cheese
Arla Natura Arla Foods Amba Hypermarket 150
g 47.9
Jun-12 Spreadable
Unprocessed Cheese
Arla Natura Arla Foods Amba Supermarket 150
g 47.9
Jun-12 Spreadable
Unprocessed Cheese
Castelli Mascarpone Nuova Castelli Internet retailing 250 g 238.1
Jun-12 Spreadable Castelli Ricotta Nuova Castelli Internet retailing 250 153.7
Cheese is milk's leap towards immortality. Cliff Fadiman
129 | Page
Unprocessed Cheese
g
Jun-12 Spreadable
Unprocessed Cheese
Manciano Ricotta Caseificio
Sociale Manciano
Supermarket 310 g 416.0
Jun-12 Spreadable
Unprocessed Cheese
Santa Lucia Mascarpone Galbani Group Hypermarket 250 g 123.0
Jun-12 Spreadable
Unprocessed Cheese
Santa Lucia Mascarpone Galbani Group Internet retailing 250 g 222.0
Jun-12 Spreadable
Unprocessed Cheese
Santa Lucia Mascarpone Galbani Group Supermarket 250 g 209.0
Source: www.portal.euromonitor.com
Figure 2. Cheese pricing by categories, brands, company names, outlets and package sizes in
Georgia for June, 2012
Pricing Date Categories Brands Company Name Outlets Pack
Size Price
(GEL)8
Jun-12 Spreadable Processed Cheese Buko Arla Foods Amba Hypermarket 200
g 3.9
Jun-12 Spreadable Processed Cheese
Gut & Gunstig Gut & Gunstig Hypermarket 250
g 5.5
Jun-12 Spreadable Processed Cheese Viola Valio Oy Hypermarket 400
g 7.9
Jun-12 Spreadable Processed Cheese Yantarnii RZPC OAO Hypermarket 100
g 1.6
Jun-12 Unspreadable Processed Cheese Hochland Hochland Reich,
Summer & Co Hypermarket 150 g 3.4
Jun-12 Unspreadable Processed Cheese President Lactalis, Groupe Hypermarket 200
g 7.4
Jun-12 Unspreadable Processed Cheese President Lactalis, Groupe Hypermarket 50 g 0.9
Jun-12 Unspreadable Processed Cheese Viola Valio Oy Hypermarket 100
g 3.6
Jun-12 Unspreadable Processed Cheese Viola Valio Oy Hypermarket 150
g 3.6
8 $ 1 ≈ GEL 1.66
Cheese is milk's leap towards immortality. Cliff Fadiman
130 | Page
Jun-12 Packaged Hard Cheese Bayernland Bayernland eG Hypermarket 500 g 15.5
Jun-12 Packaged Hard Cheese Guda Raty Ltd Hypermarket 500 g 10.0
Jun-12 Packaged Hard Cheese Oltermanni Valio Oy Hypermarket 100 g 2.5
Jun-12 Unpackaged Hard Cheese Bayerland Bayernland eG Hypermarket 1 kg 20.5
Jun-12 Unpackaged Hard Cheese Frico Royal
FrieslandCampina NV
Hypermarket 1 kg 27.4
Jun-12 Unpackaged Hard Cheese Guda Kazala Ltd Hypermarket 1 kg 17.0
Jun-12 Unpackaged Hard Cheese Lamber Wimm-Bill-Dann Produkty Pitania
OAO Hypermarket 1 kg 25.0
Jun-12 Unpackaged Hard Cheese President Maasdam Lactalis, Groupe Hypermarket 1 kg 23.0
Jun-12 Unpackaged Hard Cheese Valio Valio Oy Hypermarket 500 g 9.0
Jun-12 Soft Cheese Arla Arla Foods Amba Hypermarket 1 kg 14.3
Jun-12 Soft Cheese Brie Kaserei
Champignon Hofmeister KG
Hypermarket 125 g 11.0
Jun-12 Soft Cheese Eco Food Georgian-Eco Ltd Independent Small Grocers
400 g 5.5
Jun-12 Soft Cheese Imeruli Kazala Ltd Hypermarket 1 kg 7.5
Jun-12 Soft Cheese Mascarpone Edeka Zentrale AG & Co KG Hypermarket 250
g 6.1
Jun-12 Soft Cheese Suluguni Kiziki Ltd Hypermarket 1 kg 15.0
Jun-12 Spreadable Unprocessed Cheese Nadugi Mze Ltd Hypermarket 500
g 4.5
Source: www.portal.euromonitor.com
Cheese is milk's leap towards immortality. Cliff Fadiman
131 | Page
Figure 3. Cheese pricing by categories, brands, company names, outlets and package sizes in
the UAE for June, 2012
Pricing Date Categories Brands Company Name Outlets Pack
Size Price
(AED)9
Jun-12 Spreadable Processed Cheese
Almarai Spreadable
Cream Cheese Original
Almarai Co Ltd Hypermarket 432 g 11.8
Jun-12 Spreadable Processed Cheese
Almarai Triangle Cheese Almarai Co Ltd Hypermarket 360 g 6.9
Jun-12 Spreadable Processed Cheese
Happy Cow Cheese
Gebrüder Woerle GmbH Hypermarket 120 g 15.5
Jun-12 Spreadable Processed Cheese
Kraft Cream Cheese Spread
Original Squeeze Kraft Foods Inc Hypermarket 440 g 15.0
Jun-12 Spreadable Processed Cheese
Kraft Cream Cheese Spread
Original Kraft Foods Inc Hypermarket 400 g 15.0
Jun-12 Spreadable Processed Cheese
Kraft Cream Cheese Spread
Original Kraft Foods Inc Hypermarket 500 g 14.4
Jun-12 Spreadable Processed Cheese
Kraft Processed Cheddar Cheese Kraft Foods Inc Hypermarket 500 g 18.1
Jun-12 Spreadable Processed Cheese
Philadelphia Cream Cheese
Kraft Foods Global Inc Hypermarket 200 g 8.1
Jun-12 Spreadable Processed Cheese
Philadelphia Cream Cheese
Kraft Foods Global Inc Hypermarket 300 g 10.6
Jun-12 Spreadable Processed Cheese
Philadelphia Cream Cheese
Lite with Chives
Kraft Foods Global Inc Supermarket 200 g 26.5
Jun-12 Spreadable Processed Cheese
Puck Cream Cheese Spread Cheddar Taste
Arla Foods Amba Hypermarket 2 x 240 g 10.0
9 $ 1 ≈ AED 3.67
Cheese is milk's leap towards immortality. Cliff Fadiman
132 | Page
Jun-12 Spreadable Processed Cheese
Puck Processed Cheese Spread Arla Foods Amba Hypermarket 360 g 7.3
Jun-12 Unspreadable Processed Cheese
Kraft Mozzarella Cheese
Kraft Foods Global Inc Hypermarket 200 g 8.8
Jun-12 Packaged Hard Cheese Frico Maasdam FrieslandCampina Cheese Llc Hypermarket 260 g 15.8
Jun-12 Packaged Hard Cheese Frico Original Gouda Mild
FrieslandCampina Cheese LLC Hypermarket 295 g 17.4
Jun-12 Packaged Hard Cheese Kraft Colby & Monterey Jack
Kraft Foods Global Hypermarket 226 g 15.5
Jun-12 Packaged Hard Cheese Kraft Monterey Jack
Kraft Foods Global Hypermarket 226 g 14.3
Jun-12 Packaged Hard Cheese Kraft Sharp Cheddar
Kraft Foods Global Hypermarket 226 g 15.5
Jun-12 Soft Cheese La Mozzarella Light Latbri SpA Supermarket 100 g 12.8
Jun-12 Soft Cheese Latbri Latte Di Bufala Latbri SpA Hypermarket 125 g 15.3
Jun-12 Soft Cheese Latbri Mozzarella Latbri SpA Hypermarket 125 g 8.4
Jun-12 Soft Cheese Latbri Mozzarella Latbri SpA Supermarket 125 g 11.0
Jun-12 Soft Cheese Latbri Ricotta Latbri SpA Hypermarket 250 g 12.0
Jun-12 Soft Cheese Latbri Ricotta Latbri SpA Supermarket 250 g 16.0
Jun-12 Soft Cheese President Camembert LBF SNC Hypermarket 250 g 24.3
Jun-12 Spreadable Unprocessed Cheese Boursin Groupe Bel Hypermarket 150 g 25.3
Jun-12 Spreadable Unprocessed Cheese
Soignon Chevre with Chive Eurial BP Hypermarket 150 g 14.8
Cheese is milk's leap towards immortality. Cliff Fadiman
133 | Page
Jun-12 Spreadable Unprocessed Cheese
Soignon Fromage de
Chevre Cendre Eurial BP Hypermarket 150 g 14.0
Jun-12 Spreadable Unprocessed Cheese
Soignon Le Chevre Eurial BP Hypermarket 150 g 19.3
Source: www.portal.euromonitor.com
Figure 4. Cheese pricing by categories, brands, company names, outlets and package sizes in
Saudi Arabia for June, 2012
Pricing Date Categories Brands Company
Name Outlets Pack Size
Price (SAR)10
Jun-12 Spreadable Processed
Cheese
Al Marai Cream Cheese
Spread Al Marai Co Hypermarket 500 g 15.0
Jun-12 Spreadable Processed
Cheese
Al Marai Light Cream Cheese
Spread Al Marai Co Hypermarket 500 g 15.0
Jun-12 Spreadable Processed
Cheese
Al Marai Portions Al Marai Co Hypermarket 12
units 7.0
Jun-12 Spreadable Processed
Cheese Kiri
Saudi New Zealand Dairy Products Co
Hypermarket 12 units 9.5
Jun-12 Spreadable Processed
Cheese Kiri Jar
Saudi New Zealand Dairy Products Co
Hypermarket 600 g 20.3
Jun-12 Spreadable Processed
Cheese Kraft Kraft Jacobs
Suchard Ltd Hypermarket 500 g 15.7
Jun-12 Spreadable Processed
Cheese Kraft White Kraft Jacobs
Suchard Ltd Hypermarket 500 g 14.0
Jun-12 Spreadable Processed
Cheese
La Vache Qui Rit Gold Extra
Saudi New Zealand Dairy Products Co
Hypermarket 450 g 15.0
Jun-12 Spreadable Processed
Cheese
La Vache Qui Rit Portion
Saudi New Zealand Dairy Products Co
Hypermarket 32 units 16.0
Jun-12 Spreadable Processed
Cheese Luna
National Food Industries Co
Ltd Hypermarket 500 g 14.3
10 $ 1 ≈ SAR 3.75
Cheese is milk's leap towards immortality. Cliff Fadiman
134 | Page
Jun-12 Spreadable Processed
Cheese Philadelphia Kraft Jacobs
Suchard Ltd Hypermarket 300 g 13.5
Jun-12 Spreadable Processed
Cheese
Philadelphia Light
Kraft Jacobs Suchard Ltd Hypermarket 300 g 14.5
Jun-12 Spreadable Processed
Cheese
Président cream cheese
Besnier Foods Ltd Hypermarket 240 g 8.0
Jun-12 Spreadable Processed
Cheese Puck
Arla Foods Saudi Arabia
(Danya Foods) Hypermarket 200 g 8.5
Jun-12 Spreadable Processed
Cheese
Puck Cheddar spread
Arla Foods Saudi Arabia
(Danya Foods) Hypermarket 500 g 11.0
Jun-12 Spreadable Processed
Cheese Puck light
Arla Foods Arabia (Danya
Foods) Hypermarket 200 g 8.8
Jun-12 Spreadable Processed
Cheese Regal Picon
Saudi New Zealand Dairy Products Co
Hypermarket 24 units 11.0
Jun-12 Spreadable Processed
Cheese Saudia
Saudi Dairy & Foodstuff Co Ltd Sadafco
Supermarket 240 g 8.3
Jun-12 Unspreadable
Processed Cheese
Al Marai Al Marai Co Supermarket 500 g 14.5
Jun-12 Unspreadable
Processed Cheese
Almarai Low Fat Almarai Co Hypermarket 500 g 16.0
Jun-12 Unspreadable
Processed Cheese
Carrefour Carrefour SA Hypermarket 200 g 5.5
Jun-12 Unspreadable
Processed Cheese
Chesdale Saudi New
Zealand Dairy Products Co
Hypermarket 250 g 10.5
Jun-12 Unspreadable
Processed Cheese
Kraft Kraft Jacobs Suchard Ltd Hypermarket 250 g 10.0
Jun-12 Unspreadable
Processed Cheese
La Vache Qui Rit
Saudi New Zealand Dairy Products Co
Hypermarket 200 g 7.0
Jun-12 Unspreadable
Processed Cheese
Nadec
National Agricultural
Development Co (NADEC)
Hypermarket 200 g 6.5
Jun-12 Unspreadable
Processed Cheese
Nadec light
National Agricultural
Development Co (NADEC)
Hypermarket 200 g 7.5
Cheese is milk's leap towards immortality. Cliff Fadiman
135 | Page
Jun-12 Unspreadable
Processed Cheese
Pride United Food
Industries Corp Ltd
Hypermarket 200 g 6.5
Jun-12 Unspreadable
Processed Cheese
Pride Light n Tasty
United Food Industries Corp
Ltd Hypermarket 400 g 15.0
Jun-12 Unspreadable
Processed Cheese
Président Besnier Foods Ltd Hypermarket 200 g 6.8
Jun-12 Unspreadable
Processed Cheese
Président 0% fat
Besnier Foods Ltd Hypermarket 200 g 8.5
Jun-12 Unspreadable
Processed Cheese
Singles Kraft Jacobs Suchard Ltd Hypermarket 200 g 20.5
Jun-12 Unspreadable
Processed Cheese
Singles Light Kraft Jacobs Suchard Ltd Hypermarket 400 g 20.0
Jun-12 Packaged Hard Cheese
Al Marai Cheddar Al Marai Co Hypermarket 113 g 3.5
Jun-12 Packaged Hard Cheese Frico Gouda
Frico International
LLC Hypermarket 295 g 14.0
Jun-12 Packaged Hard Cheese
Frico Herbal Dutch
Frico International
LLC Hypermarket 235 g 14.8
Jun-12 Packaged Hard Cheese
Frico Red Hot Dutch
Frico International
LLC Hypermarket 235 g 14.8
Jun-12 Packaged Hard Cheese Kraft Cheddar Kraft Jacobs
Suchard Ltd Hypermarket 500 g 20.5
Jun-12 Packaged Hard Cheese
Kraft Mozza Cheddar
Kraft Jacobs Suchard Ltd Hypermarket 113 g 106.0
Jun-12 Packaged Hard Cheese Pride Cheddar
United Food Industries Corp
Ltd Hypermarket 1 kg 29.0
Jun-12 Packaged Hard Cheese Président Besnier Foods
Ltd Hypermarket 240 g 6.9
Jun-12 Packaged Hard Cheese
Saudia Cheddar
Saudi Dairy & Foodstuff Co Ltd Sadafco
Hypermarket 113 g 4.5
Jun-12 Unpackaged Hard Cheese Anchor
Saudi New Zealand Dairy Products Co
Hypermarket 1 kg 39.0
Cheese is milk's leap towards immortality. Cliff Fadiman
136 | Page
Jun-12 Unpackaged Hard Cheese Bridel Lactalis
International Hypermarket 1 kg 42.0
Jun-12 Unpackaged Hard Cheese Frico Edam
Frico International
LLC Hypermarket 1 kg 55.0
Jun-12 Unpackaged Hard Cheese Frico Gouda
Frico International
LLC Hypermarket 1 kg 39.0
Jun-12 Unpackaged Hard Cheese Halwani Halwani Bros
Co Hypermarket 1 kg 38.0
Jun-12 Unpackaged Hard Cheese Pride
United Food Industries Corp
Ltd Hypermarket 1 kg 29.0
Jun-12 Unpackaged Hard Cheese Sunbulah
Sunbulah Food & Fine Pastries
Mfg Co Ltd Hypermarket 1 kg 36.5
Jun-12 Unpackaged Hard Cheese Three Cows
Arla Foods Saudi Arabia
(Danya Foods) Hypermarket 1 kg 21.5
Jun-12 Soft Cheese Al Marai Halloum Al Marai Co Hypermarket 225 g 13.0
Jun-12 Soft Cheese Al Marai
White/Feta Cheese
Al Marai Co Supermarket 200 g 5.5
Jun-12 Soft Cheese Almarai Feta low fat Almarai Co Hypermarket 200 g 5.0
Jun-12 Soft Cheese Nadec Mozzarella
National Agricultural
Development Co (NADEC)
Supermarket 200 g 5.3
Jun-12 Soft Cheese Pride United Food
Industries Corp Ltd
Hypermarket 500 g 9.3
Jun-12 Soft Cheese Président Mozzarella
Besnier Foods Ltd Supermarket 450 g 20.0
Jun-12 Soft Cheese Puck Mozzarella
Arla Foods Saudi Arabia
(Danya Foods) Hypermarket 1 kg 40.0
Jun-12 Soft Cheese Three Cows Arla Foods
Saudi Arabia (Danya Foods)
Hypermarket 200 g 5.8
Jun-12 Soft Cheese Three Cows
Danish White cheese low fat
Arla foods Saudi Arabia
(Danya Foods) Hypermarket 200 g 6.0
Cheese is milk's leap towards immortality. Cliff Fadiman
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Jun-12 Soft Cheese Three Cows Mozarella
Arla Foods Saudi Arabia
(Danya Foods) Hypermarket 1 kg 21.5
Jun-12 Spreadable
Unprocessed Cheese
Boursin Unilever Group Hypermarket 96 g 30.0
Jun-12 Spreadable
Unprocessed Cheese
Chavroux Bongrain SA Hypermarket 150 g 33.5
Source: www.portal.euromonitor.com
Armenian Development Agency
2012