“New Zealand is the largest player in the world WMP export market, with a share of around 38%,” it said. “World prices therefore are likely to follow the movements in the Fonterra auction closely. This suggests that the world market price for WMP is likely to see some further upward movements over coming months.”
A reduction in Cheddar imports to the UK is also likely to be supportive to the market. In July, imports fell below last year’s level for the first time this year, bringing the cumulative level down to 71,970t – 2.3% below the same period in 2008. This was primarily due to reduced imports from Ireland, said DairyCo.
“If this trend of reduced imports continues over coming months, it could ease pressure on British cheese manufacturers, particularly at the lower end of the cheese market.”