CATEGORY

Cheese

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Category Alerts


CATEGORY ALERTS

Cheese inventories are heavy in the US

June 28, 2022
alert level: Medium
CATEGORY ALERTS

Cheese retail Inflation in the UK

June 29, 2022
alert level: Medium
CATEGORY ALERTS

Milk production forecast in UK

June 30, 2022
alert level: Medium

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Cheese Market Monitoring Dashboard


Price Trend
5065.00
Dec-2022
USD/MT
History Forecast
Supply Demand

Understand the correlation between costs, margins, and prices impacting your category on a real time basis on Beroe LiVE.Ai™

Cheese Industry Benchmarks


Savings Achieved

(in %)

The average annual savings achieved in Cheese category is 5.30%

Payment Terms

(in days)

The industry average payment terms in Cheese category for the current quarter is 23.3 days

Compare your category performance against peers and industry benchmarks across 20+ parameters on Beroe LiVE.Ai™

Category Strategy and Flexibility

Engagement Model

Supply Assurance

Sourcing Process

Supplier Type

Pricing Model

Contract Length

SLAs/KPIs

Lead Time

Supplier Diversity

Targeted Savings

Risk Mitigation

Financial Risk

Sanctions

AMEs

Geopolitical Risk

Cost Optimization

Price per Unit Competitiveness

Specification Leanness

Minimum Order Quality

Payment Terms

Inventory Control

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    Cheese Suppliers


    22,401
    Total Suppliers
    779
    Diverse Suppliers
    64
    Normalized Supplier Rating
    Cheese Supplier

    Find the right-fit cheese supplier for your specific business needs and filter by location, industry, category, revenue, certifications, and more on Beroe LiVE.Ai™.

    Sample Supplier
    Company
    CARGILL INCORPORATED
    Location
    Jackson, Mississipi
    Duns number
    3862211

    D&B SER Rating

    dnb logo

    Up to 3 months

    1 9
    5
    Low Risk High Risk

    The Supplier Evaluation Risk (SER) Rating is Dun & Bradstreet’s proprietary scoring system used to assess the probability that a business will seek relief from creditors or cease operations within the next 12 months. SER ratings range from 1 to 9, with 9 indicating the highest risk of failure. We’ve prepared an infographic to help business owners better understand what influences their SER Rating.

    Moody`s ESG Solution
    ESG Profile

    Company and Sector Performance
    29

    100
    Weak (1)
    ESG Perfomance (/100)
    Environment
    38
    Social
    28
    Governance
    19
    6 Domains Performance (/100)
    Business behaviour
    38
    Human rights
    24
    Community Environment
    26
    Corporate governance
    9
    Human resources
    21
    Security Scorecard
    82

    Threat indicators
    B
    88
    Network Security
    Detecting insecure network settings
    A
    100
    Hacker Chatter
    Monitoring hacker sites for chatter about your company
    C
    77
    DNS Health
    Detecting DNS insecure configuration and vulnerabilities
    C
    75
    Application Security
    Detecting common website application vulnerbilities
    C
    74
    Endpoint Security
    Detecting unprotected enpoints or entry points of user tools, such as desktops, laptops mobile devices, and virtual desktops
    A
    97
    Cubic Score
    Proprietary algorithms checking for implementation of common security best practices
    A
    93
    Patching Cadence
    Out of date company assets which may contain vulnerabilities of risk
    A
    100
    Social Engineering
    Measuring company awareness to a social engineering or phising attack
    A
    95
    IP Reputation
    Detecting suspecious activity, such as malware or spam, within your company network
    A
    100
    Information Leak
    Potentially confidential company information which may have been inadvertently leaked

    Industry Comparison
    cargill.com
    Industry average
    Adverse Media Appearances
    Environmental Issues
    23
    Workforce Health Safety Issues
    0
    Product Service Issues
    14
    Human Rights Issues
    23
    Production Supply Chain Issues
    8
    Environmental Non Compliance Flags
    45
    Corruption Issues
    0
    Regulatory Non Compliance Flags
    25
    Fraud Issues
    5
    Labor Health Safety Flags
    48
    Regulatory Issues
    20
    Workforce Disputes
    6
    Sanctions
    0
    esg energy transition
    47
    Discrimination Workforce Rights Issues
    19
    esg controversies critical severity
    Yes

    Cheese market frequently asked questions


    The key factors that determine the pricing for cheese include: > Capacity utilization > Overall annual yield > Cost components (operating cost, fixed cost, and overhead cost) > Profit margins

    The global cheese market is witnessing a surplus of 0.8 million metric tons (MMT), with production and consumption growing at nearly identical CAGR. The European Union (EU) and the US, making up for around 4/5 of the overall yield, are the prominent cheese producers.

    The profit margin of producing milk derivatives is 30%, which is greater than that of milk powders – around 15%. Moreover, whey production does not include raw material costs as it is a by-product of casein and cheese. As such, market players are increasing their focus on butter and cheese.

    The GDT auction in Oceania, the CME trade in the US, and the European milk future systems have increased the volatility in the cheese prices. As such, the end product-based pricing results in fluctuations, hitting the revenue pools of the processors.

    Prominent cheese suppliers are integrating into the dairy farm level, and companies, including Amul and Fonterra, are secured via the collaborative models. However, the suppliers are still subject to potential risks if their collaborative models fail to make competitive milk pay-outs to stakeholder suppliers.

    The probable impacts of Brexit on dairy derivatives, including cheese, are as follows: > Decreased demand for dairy products from the key oil-producing countries > Significant reduction in the Foreign Direct Investment (FDI) > Ireland shifting from the UK market to emerging regions, such as India > Escalating trade costs for prominent suppliers > Dip of international dairy derivative prices

    Cheese market report transcript


    Cheese Global Market Outlook:

    • The global supply–demand dynamics scenario is stabilizing in both milk and dairy derivatives, as the oversupplied condition in the market is lightening. The regional differences and skewed trade dynamics are expected to govern the global price volatility in the near term
    • Oceania is a key market, as it produces only 5 percent of the global milk, but contributes to more than 40 percent of the milk derivatives export market

    Demand Analysis

    • The global cheese landscape is dominated by the top EU and U.S. regions, accounting for nearly 80 percent of the production share
    • The market is oversupplied by 0.8MMT with production growing at a CAGR of 2.18 percent against consumption at 2
      percent

    Cost and Price Analysis

    • Raw material is the key cost factor (47-52 percent), in cheese and butter production. Since whey is a by-product of cheese and casein, no raw material cost is calculated to it. The profit margin of producing derivatives is 30 percent, which is higher than that of milk powders (~15 percent). Thus major producing regions, concentrate more on butter and cheese.
    • Even though the prices dipped in April 2020 owing to COVID-19 pandemic concerns, the market recovered quickly. Considering the steady demand, the prices are likely to trade higher and the trend is likely to continue throughout 2021.

    Key factors tracked for pricing estimations:

    • Total annual production, capacity utilization, cost components (fixed cost, operating cost. overhead cost), and profit margins.
    • The potential impact of Brexit on dairy derivatives includes major reduction in Foreign Direct Investment (FDI), reduced demand for dairy products from the major oil producing countries, Ireland shifting from the UK market and opening up opportunities for countries, like India, increasing business & trade costs for major suppliers, like Arla, and fall of international dairy derivative prices.

    Volatility and Profitability in the Cheese Industry

    • The CME trade in the U.S., GDT auction in Oceania, and European milk future systems have increased commoditization and volatility in cheese prices. The end product-based pricing leads to volatilility and decreased profit margins for processors
    • A suitable hedging option could help the category managers overcome volatility and margin issues in supplier engagements

    Porter’s Five Forces Analysis

    • The market volatility opens opportunities for dairy farmers in India, Russia, Ukraine, China, and Brazil to increase efficiency of production
    • Major suppliers are integrated to dairy farm level and companies like Fonterra and Amul, are secured through the co-operative models
    • Significant threat exists if major suppliers co-operatives cannot make competitive milk pay-outs to shareholder suppliers