Global Cheese Industry

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Global Cheese Industry
Published on February 2010

Report Summary

This report analyzes the worldwide markets for Cheese in Thousand Metric Tons. The report provides separate comprehensive
analytics for US, Canada, Japan, Europe, Asia Pacific, Latin America, and Rest of World. Annual forecasts are provided for each
region for the period 2006 through 2015. The report profiles 364 companies including many key and niche players worldwide such as
Arla Foods, amba., Belaya Reka Holding, Bongrain, SA., Belgioioso Cheese, Inc., Crystal Farms, Cabot Creamery 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., Kraft Foods, 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., and Wisconsin Cheese Group Inc. Market data and analytics
are derived from primary and secondary research. Company profiles are mostly extracted from URL research and reported select
online sources.

Table of Content

CHEESE MCP-6006
A GLOBAL STRATEGIC BUSINESS REPORT

CONTENTS

I. INTRODUCTION, METHODOLOGY & PRODUCT DEFINITIONS

Study Reliability and Reporting Limitations I-1
Disclaimers I-2
Data Interpretation & Reporting Level I-3
Quantitative Techniques & Analytics I-3
Product Definitions and Scope of Study I-3

II. EXECUTIVE SUMMARY

1. INDUSTRY OVERVIEW II-1
Recession Alters the Cheese Industry's Dynamics: A Review II-1
International Cheese Prices in a State of Flux II-1
International Trade in Cheese Derails II-2
Cheese Consumption Patterns Falter II-2

Global Cheese Industry Page 1/14


Pricey Cheese: A Business Buster II-3
New Marketing Strategies in the Offing, Post Recession II-3
Organic Cheese to Make Cash Registers Ring, Post Recession II-4
Developing Nations to Drive World Cheese Consumption in the
Post Recession Period II-4
Key Statistical Findings II-5
Table 1: Global Production of Cheese (2007 & 2009E):
Breakdown of Production Volume by Select Country/Region (In
000' Metric Tons) (includes corresponding Graph/Chart) II-5

Table 2: Global Cheese Market (2006): Per Capita Consumption
In Select Countries (In Kilograms) (includes corresponding
Graph/Chart) II-6

Table 3: Global Exports of Cheese (2007 & 2008): Breakdown of
Export Volume (In 000' Metric Tons) by Country (includes
corresponding Graph/Chart) II-7

Table 4: Global Imports of Cheese (2007 & 2008): Breakdown
of Import Volume (In 000' Metric Tons) by Country (includes
corresponding Graph/Chart) II-7

2. PRODUCT OVERVIEW II-8
Cheese: A Definition II-8
Cheese: Nutritional Facts II-8
Table 5: Calories, Milk fat and Nutrient Value per ½-cup
Serving (includes corresponding Graph/Chart) II-9
Cheese: An Evolution Scan II-9
Cheese Production Process: A Review II-11
Types of Cheese by Texture II-13
Fresh & Processed Cheese: A Classification II-19
Legal & Regulatory Issues II-23
Controversies Surrounding 'Cheese Consumption' II-23
Cultural Influences On Cheese Consumption Patterns II-24
The Lighter Side of Cheese: 'Linguistic Connotations' II-25

3. RECENT INDUSTRY ACTIVITY II-26
Emmi Takes Over Roth Kase II-26
Milk Link Takes Over Llandyrnog II-26
Hilco and Monomoy Take Over Atkins II-26
Fonterra Inks Deal with Arab Dairy II-26
Arla Inks Agreement with Green Meadows II-27
Toobro Takes Over Ahava II-27
Perdigao Gets European Commission Clearance for Merger with
Sadia II-27
Lactalis McLelland Takes Over Lubborn Cheese II-27
Saputo Takes Over F&A Dairy II-28
Arthur Schuman Purchases Wisconsin Farmers Union Specialty
Cheese II-28
Britannia Purchases Stake in Fonterra II-28



Jeffrey's Enters Into Alliance with Cheese Works II-29
Glanbia and Greater Southwest Enhance Business II-29
DMI and Domino Enter Into an Alliance II-30
Kerry Group Takes over Breeo Foods II-30
Irish Dairy Board Expands Operation of Kerrygold Company II-30
Friesland Foods and Campina Receive Approval for Merger II-31
Bega Cheese to Acquire Kraft Facility II-31
Organic To Go Food Takes Over a Store of Marvelous Market II-32
WCB and NF Signs Joint Venture Agreement for Cheese Production II-32
Artisanal Premium Cheese to Ink Marketing, Distribution Deals
with Harvest Song II-32
Norseland to Acquire Ilchester Cheese Company II-33
Albalact Acquires 77% Interest in Raraul Campulung Moldovenesc II-33
Erkonprodukt and Bel to Form Cheese Joint Venture II-33
Kroger Inaugurates Murray's Cheese Unit in Its Store II-34
Glanbia Takes Over Optimum Nutrition II-34
Dairy UK Merges with BCB II-34
Kirin Holdings to Acquire Dairy Farmers' Cheese and Yogurt
Labels II-35
Swiss Cheese Producer Taken over by Mifroma II-35
Monterey Gourmet Foods Acquires the Outstanding 20% Interest
in Sonoma Foods II-35
Southern Fulfillment Services Acquires Pittman & Davis II-35
Best Cheese Corp. Completes Coach Farm Acquisition II-35
Saputo Acquires the US Operations of Alto Dairy Cooperative II-36
Lactalis Takes Over Kraft's Spanish Cream Cheese Business II-36
Artisanal Premium Cheese Inks Distribution Agreement with
Coastal Sunbelt II-36
National Foods Secures ACCC Approval for Proposed Dairy
Farmers Acquisition II-37
Agropur Acquires Trega Foods II-37
Monterey Gourmet Announced Plans to Expand Sonoma Cheese
Distribution Agreement II-38
Artisanal and Baldor Sign Distribution Agreement II-38
Kraft Foods & Sadia Ink Partnership II-39
Caledonian Cheese Recruits 20 Farmer Suppliers II-39
Arla Foods Announces Capacity Expansion at Cheese Plant II-39
Velikoluksky Dairy Plans Euro 5.2 MLN Investment for
Production Modernization II-40
Foodland Takes over Controlling Stake in Semikarakorskiy II-40
Sapal SA to Acquire the Assets of Kimaco SA II-40
Nascent Takes Over Commercial Targa II-41
American Home Foods Products Takes Over Artisanal Cheese LLC II-41
Palladium Equity Partners Acquires Castro Cheese II-41
Associated Milk Producers Completes Cass Clay Creamery
Acquisition II-41
Nascent Wine Co Acquires Commercial Targa SA II-42
Saputo Takes Over Cheese & Protein International II-42
Sigma Alimentos Takes Over Mexican Cheese Producers II-42
Tine BA to Acquire Wernersson Ost, the Swedish Cheese Importer II-42



Emmi Acquires Stakes in Ambrosi S.p.A. II-42
Brewster Dairy to Acquire Cheese Production Facility in Idaho
from Kraft II-43
Gencor Takes Over Thornloe Cheese Factory II-43
Valcrest Acquires Stakes in Chevrechard II-43
Novel Group Completes Cheese Cellar Company Acquisition II-43
Arla Divests Stake in Delimo to Lactalis II-44
Kroger and Murray's Cheese Agree to Expand Specialty Cheese
Program II-44
Bel and Sahar Dairy form a Joint Venture II-44
Arla Foods forms Joint Venture with Artis II-45
Campina to Divest Goat's Cheese Business II-45
Unilever Divests Boursin Cheese Brand II-45
Glanbia Foods Commences Production of Organic Cheeses II-46
Bograin's Cheese JV with Sodiaal Receives EC Approval II-46
ABS Global Forges an Alliance Agreement with Agrícola Panquehue II-46
Land O'Lakes to Divest Assets of CPI to Saputo II-47
KOVELMOLOKO Plans the Launch of Curd-Cheese Plant II-48
DFA Plans the Closure of its California-based Cheese Plant II-48
Olam International Purchases 2.86% Stake in Open Country Cheese II-48
Arla Foods Ceases the Production of Emmental Cheese II-49
Campina Sells its Belgian Cheese Unit to Bongrain II-49
Dairy Trust Plans to Acquire Open Country Cheese Company II-49
Fromageries Bel Announces 100% Acquisition Over Shostka II-50
Ukrproduct Group Plans to Set-up New Cheese Production Plant II-50
Bega Cheese Announces Majority Share Take-Over in Tatura Milk II-50
G. Willi-Food International Inks Agreement with the
Distributor for New JV II-51
Unilever to Sell Bousin Cheese Business to Le Groupe Bel II-51

4. PRODUCT LAUNCHES/INNOVATIONS II-52
Arla Augments Lactofree Dairy Collection II-52
Bradbury to Launch Go Dutch Edam Cheese II-52
Alouette® Launches All-New Baby Brie® Wedge II-52
Cabot Creamery Introduces New Cabot OU Kosher Sharp Cheddar II-52
Land O'Lakes Unveils American Deli Cheese II-53
Almarai Introduces White Cheese in SIG Combibloc's Carton
Package II-53
Kraft to Re-introduce Dairylea Cheeses with a Multi-Million
Pound Media Program II-53
Sargento Adds Authentic Latin Cheese to the Artisan Blends
Cheese Range II-54
Cabot Launches New Low-Fat Omega-3 DHA-Based Cheddar Cheese II-54
DFA Introduces All-New Borden® Cheese Containing Antioxidants II-54
Lucini to Launch Lucini Organic Stravecchio Parmigiano
Reggiano Cheese II-55
Sara Lee Unveils Sara Lee Cheesecake Bites II-55
Sorrento Launches Two Offerings under Sorrento® Cheese Range II-55
First Milk Announces New Regional Cheese Range II-55
Lactalis Expands Scottish Cheese to Asia and Middle East II-56



Kraft Unveils 'LiveActive' Cheddar Cheese with Probiotics II-56

5. FOCUS ON SELECT GLOBAL PLAYERS II-57
Arla Foods, amba., (Denmark) II-57
Belaya Reka Holding, (Russia) II-57
Bongrain, SA., (France) II-57
Belgioioso Cheese, Inc., (USA) II-57
Crystal Farms (USA) II-58
Cabot Creamery Cooperative, Inc., (USA) II-58
Dairy Farmers of America, Inc., (USA) II-58
Derivados De Leche La Esmeralda, (Mexico) II-58
Dairy Crest Group, Plc., (UK) II-59
Fonterra Group Cooperative Limited, (New Zealand) II-59
Fromageries Bel, SA., (France) II-59
Groupe Danone, S.A., (France) II-60
Great Lakes Cheese Company, Inc., (USA) II-60
Grupo Industrial Lala, S.A. de C.V., (Mexico) II-60
Kraft Foods, Inc., (USA) II-60
Land O' Lakes, Inc., (USA) II-61
Leprino Foods Company, Inc., (USA) II-61
Lactalis McLelland, Ltd., (UK) II-61
Meiji Dairies, Corp., (Japan) II-61
North Downs Dairy Co, Ltd., (UK) II-62
Parmalat, S.p.A., (Italy) II-62
Snow Brand Milk Products Co, LTD., (Japan) II-62
Sancor Cooperativas Unidas Limitada, (Argentina) II-62
Saputo, Inc., (Canada) II-63
Specialty Cheese Co, Inc., (USA) II-63
Tillamook County Creamery Association, (USA) II-63
Valio Ltd (Finland) II-64
Wyke Farms, Ltd., (UK) II-64
Wisconsin Cheese Group Inc., (USA) II-64

6. GLOBAL MARKET PERSPECTIVE II-65
Table 6: World Recent Past, Current & Future Analysis for
Cheese by Geographic Region - United States, Canada, Japan,
Europe, Asia Pacific (Excluding Japan), Latin America, and
Rest of World Markets Independently Analyzed with Annual
Consumption Figures in Thousand Metric Tons for Years 2006
through 2015 (includes corresponding Graph/Chart) II-65

Table 7: World 10-Year Perspective for Cheese by Geographic
Region - Percentage Breakdown of Consumption Volume for United
States, Canada, Japan, Europe, Asia Pacific (Excluding Japan),
Latin America, and Rest of World for Years 2006, 2009 & 2015
(includes corresponding Graph/Chart) II-66

III. MARKET



1. THE UNITED STATES III-1
A.Market Analysis III-1
Outlook III-1
Market Overview III-1
Table 8: US Cheese Market (2007 & 2009E): Annual Breakdown
of Production Volume (In 000' Metric Tons) III-1

Table 9: The US Cheese Market (2008): Percentage Share
Breakdown of Production Volume by Cheese Types -
Mozzarella, Cheddar Cheese, Other Italian, Other American,
Swiss, and Others (includes corresponding Graph/Chart) III-1
Cheese: The US Federal Regulatory Framework III-2
Key Trends & Issues In a Capsule III-2
Table 10: US Cheese Market: Average Price of Cheese (US$/
Per100 Kg) for the Years 2006 through 2012 (includes
corresponding Graph/Chart) III-4

Table 11: US Exports of Cheese (2008): Breakdown of Volume
and Value Exports by Key Destination Countries (In MT, In
US$ 000) (includes corresponding Graph/Chart) III-5

Table 12: US Exports of Cheese (H1 2009): Breakdown of
Volume and Value Exports by Key Destination Countries (In
MT, In US$ 000) (includes corresponding Graph/Chart) III-6

Table 13: US Imports of Cheese (2007): Percentage Share
Breakdown of Value Imports by Select Countries of Origin
(includes corresponding Graph/Chart) III-7

Table 14: Top 10 Natural/Slice Cheese Brands in the United
States: Breakdown of Unit Sales and Value Sales Through
Supermarkets, Drugstores & Discount Stores for the Year
Ended November 2008 (In Million Units, US$ Million)

Table 15: Top 10 Natural Chunk Cheese Brands in the United
States: Breakdown of Unit Sales and Value Sales Through
Supermarkets, Drugstores & Discount Stores for the Year
Ended November 2008 (In Million Units, US$ Million)

Table 16: Top 10 Natural Shredded Cheese Brands in the
United States: Breakdown of Unit Sales and Value Sales
Through Supermarkets, Drugstores & Discount Stores for the
Year Ended November 2008 (In Million Units, US$ Million)
Product Launches III-12
Strategic Corporate Developments III-14
Key Players III-22
Belgioioso Cheese, Inc., (USA) III-22



Cabot Creamery Cooperative, Inc., (USA) III-22
Crystal Farms (USA) III-23
Dairy Farmers of America, Inc., (USA) III-23
Great Lakes Cheese Company, Inc., (USA) III-23
Kraft Foods, Inc., (USA) III-23
Land O' Lakes, Inc., (USA) III-24
Leprino Foods Company, Inc., (USA) III-24
Specialty Cheese Co, Inc., (USA) III-24
Tillamook County Creamery Association, (USA) III-24
Wisconsin Cheese Group Inc., (USA) III-25
B.Market Analytics III-25
Table 17: US Recent Past, Current & Future Analysis for
Cheese With Annual Consumption in Thousand Metric Tons for
the Years 2006 through 2015 (includes corresponding
Graph/Chart) III-25

2. CANADA III-26
Outlook III-26
Key Statistical Findings: III-26
Table 18: Canadian Cheese Market (2007 & 2009E): Annual
Breakdown of Production Volume (In 000' Metric Tons) III-26

Table 19: Cheese Production in Canada (2008): Percentage
Share Breakdown of Volume Produced by Variety (includes

Table 20: Canadian Cheese Market (2007): Percentage Share
Breakdown of Production Volume by Cheese Category

Table 21: Canadian Exports of Cheese: Percentage Share
Breakdown of Value and Volume Exports by Cheese Variety
for the Year Ended September 2008 (includes corresponding
Graph/Chart) III-27

Table 22: Canadian Cheese Exports (2008): Percentage Share
Breakdown of Volume Exports by Destination Region

Table 23: Canadian Cheese Imports (2008) - Percentage
Share Breakdown of Volume Imports By Cheese Type -
Natural, Processed and Grated (includes corresponding
Graph/Chart) III-28

Table 24: Canadian Imports of Cheese (2007): Percentage
Share Breakdown of Volume Imports by Select Countries of
Origin (includes corresponding Graph/Chart) III-28
Key Player III-29
Saputo, Inc., (Canada) III-29



Table 25: Canadian Recent Past, Current & Future Analysis
for Cheese With Annual Consumption in Thousand Metric Tons
for the Years 2006 through 2015 (includes corresponding
Graph/Chart) III-29

3. JAPAN III-30
Outlook III-30
Cheese Consumption Trends III-30
Artisanal Cheese in Vogue III-30
Innovative Marketing: An Ace Strategy in Promotion III-31
Strategic Corporate Development III-31
Key Players III-31
Meiji Dairies, Corp., (Japan) III-31
Snow Brand Milk Products Co, LTD., (Japan) III-32
Table 26: Japanese Recent Past, Current & Future Analysis
for Cheese With Annual Consumption in Thousand Metric Tons
for the Years 2006 through 2015 (includes corresponding
Graph/Chart) III-32

4. EUROPE III-33
Outlook III-33
Table 27: European Cheese Market (2007 & 2009E): Year wise
Breakdown of Production (in '000 MT) III-33

Table 28: European Cheese Market (2008): Percentage Share
Breakdown of Production by Region III-33

Table 29: Western European Cheese Market (2008): Percentage
Share Breakdown of Production by Country (includes

Table 30: Eastern European Cheese Market (2008): Percentage
Share Breakdown of Production by Country (includes
Cheese Making in Europe: An Age-Old Tradition III-34
Growth Drivers III-34
Innovation and Trade Liberalization Boosts Cheese Sales in
Europe III-34
Western Europe Drives the European Cheese Industry III-35
Roaring Demand for Industrial Cheese III-35
Focus on Select Regional Markets III-35
Germany III-35
France III-35
Italy III-36
The United Kingdom III-36



Cheshire Cheese: The Earliest Known Cheese in Britain III-37
British Market for Specialty Cheese Rides High III-37
Cheddar Cheese Fuels Cheese Market III-37
Increase in Sales of Goat Cheese in the UK III-37
Organic Cheese Segment Continues to Grow III-38
Consumers Shift to Small-Sized Packs Impacts Volume Sales III-38
Functional (Probiotic) Cheese Continue to be Niche Segment III-38
Key Statistical Findings III-39
Table 31: Top 20 Cheese Brands in the United Kingdom:
Percentage Share Breakdown of Value Sales for the Year
Ended October 2008 (includes corresponding Graph/Chart) III-39

Table 32: UK Cheese Market (2008): Percentage Share
Breakdown of Production Volume by Cheese Variety

Table 33: UK Branded Cheddar Cheese Market (2008):
Percentage Share Breakdown of Value Sales by Leading
Cheese Brands - Cathedral City, Seriously Strong,
Pilgrims Choice, Davidstow, Wyke Farms, and Others
Russia III-40
Innovation to Mark The Russian Cheese Industry III-41
Local Manufacturers Dominate the Cheese Market III-41
Packaged Cheese: The Current Flavor III-41
Product Launches III-42
Key Players III-46
Arla Foods, amba., (Denmark) III-46
Belaya Reka Holding, (Russia) III-47
Bongrain, SA., (France) III-47
Dairy Crest Group, Plc., (UK) III-47
Fromageries Bel, SA., (France) III-47
Groupe Danone, S.A., (France) III-48
Lactalis McLelland, Ltd., (UK) III-48
North Downs Dairy Co, Ltd., (UK) III-48
Parmalat, S.p.A., (Italy) III-48
Valio Ltd (Finland) III-49
Wyke Farms, Ltd., (UK) III-49
Table 34: European Recent Past, Current & Future Analysis
for Cheese by Country - France, Germany, Italy, UK, Sweden,
Poland, Russia, Ukraine, and Rest of European Markets
Independently Analyzed with Annual Consumption in Thousand
Metric Tons for the Years 2006 through 2015 (includes

Table 35: European 10-Year Perspective for Cheese by Country
- Percentage Breakdown of Consumption Volume for France,



Germany, Italy, UK, Sweden, Poland, Russia, Ukraine, and
Rest of Europe for Years 2006, 2009 & 2015 (includes

5. ASIA PACIFIC III-52
Outlook III-52
Table 36: Market for Cheese in Asia Pacific (2008):
Percentage Share Breakdown of Production Volume by Country
Focus on Select Regional Markets III-52
Key Statistical Findings III-53
Table 37: Australian Exports of Cheese (2007): Percentage
Share Breakdown of Volume Exports by Key Destination
Regions (includes corresponding Graph/Chart) III-53

Table 38: Australian Cheese Market (2007): Percentage Share
Breakdown of Volume Sales by Retail Channel III-54

Table 39: Australian Supermarket Cheese Sales (2007):
Percentage Share Breakdown of Volume Sales by Cheese Type III-54

Percentage Share Breakdown of Volume Sales by Package Size

Percentage Share Breakdown of Volume Sales by Cheese Form

Table 42: Indian Cheese Imports (2008) - Percentage Share
Breakdown of volume Imports by Countries of Origin -
Netherlands, Denmark, France, Italy, Nepal and Others

Table 43: Indian Cheese Market - Imports (In Tons) of
French Cheese into Indian Market During the Years 2004 to
2008 (includes corresponding Graph/Chart) III-59

Table 44: Indian Cheese Market (2007-2008) - Percentage
Share Breakdown of Consumption Volume, By Major Indian
Cities (includes corresponding Graph/Chart) III-59
Key Players III-61
Fonterra Group Cooperative Limited, (New Zealand) III-61
Table 45: Asia-Pacific Recent Past, Current & Future
Analysis for Cheese by Country -Australia, China, South
Korea, and Rest of Asia Pacific Markets Independently
Analyzed with Annual Consumption in Thousand Metric Tons for



the Years 2006 through 2015 (includes corresponding
Graph/Chart) III-62

Table 46: Asia-Pacific 10-Year Perspective for Cheese by
Country - Percentage Breakdown of Consumption Volume for
Australia, China, South Korea, and Rest of Asia Pacific for
Years 2006, 2009 & 2015 (includes corresponding Graph/Chart) III-63

6. LATIN AMERICA III-64
Focus on Key Regional Markets III-64
Key Players III-65
Derivados De Leche La Esmeralda, (Mexico) III-65
Grupo Industrial Lala, S.A. de C.V., (Mexico) III-65
Sancor Cooperativas Unidas Limitada, (Argentina) III-65
Table 47: Latin American Recent Past, Current & Future
Analysis for Cheese by Country -Argentina, Brazil, Mexico,
and Rest of Latin American Markets Independently Analyzed
with Annual Consumption in Thousand Metric Tons for the
Years 2006 through 2015 (includes corresponding Graph/Chart) III-66

Table 48: Latin American 10-Year Perspective for Cheese by
Country - Percentage Breakdown of Consumption Volume for
Argentina, Brazil, Mexico, and Rest of Latin America for
Years 2006, 2009 & 2015 (includes corresponding Graph/Chart) III-67

7. REST OF THE WORLD III-68
Outlook III-68
French is the Flavor in UAE Cheese Market III-68
Product Launch III-68
Table 49: Rest of World Recent Past, Current & Future
Analysis for Cheese With Annual Consumption in Thousand
Metric Tons for the Years 2006 through 2015 (includes

IV. COMPETITIVE LANDSCAPE

Total Companies Profiled: 364 (including Divisions/Subsidiaries - 380)

------------------------------------------
Region/Country Players
------------------------------------------
The United States 40



Canada 6
Japan 1
Europe 299
France 34
Germany 27
The United Kingdom 17
Italy 59
Spain 28
Rest of Europe 134
Asia-Pacific (Excluding Japan) 18
Latin America 8
Middle-East 7
Africa 1
------------------------------------------



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Global Cheese Industry