Investing in cheese manufacturing remains a good opportunity, according to the most recent RaboResearch dairy report, ‘Global Cheese Trady Dynamics: Investing in Cheese is Still a Good Bet’.
A conservative approach to greenfield investment in cheese capacity is also warranted over the medium term. There are also considerable risks to playing in this market. Prominent among these risks are elevated geopolitical and macroeconomic uncertainty, resulting in trade disruption, and currency fluctuations that ultimately contribute to a more volatile trade environment.
With the right corporate strategies, these can be managed, but some caution is warranted. Key factors for success will include staying agile, access to offshore markets, industry support, scale, and a culture of innovation.