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The Grocer Talking Retail

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Irish cheese suppliers begin stockpiling amid Brexit fears

Irish cheese suppliers have begun stockpiling cheddar in the UK in preparation for the huge hit in tariffs that would follow a no-deal Brexit.

Exports of Irish cheddar to the UK are at their highest levels since 2015 [AHDB], with Ireland’s share of total cheddar imports to the UK rising from 78% during the first half of 2016 to 89% in the first half of 2018. Volumes had risen by 32% to 46,683 tonnes during the same period, the AHDB said.

With WTO tariffs for cheddar standing at 42%, or €1,671 per tonne, this pointed to a move to build up stocks in the UK and “mitigate potential border and customs issues post-Brexit”, suggested AHDB analyst Chris Gooderham.

It comes as Pilgrims Choice owner Ornua – by far the largest exporter of Irish cheddar to the UK – this week confirmed it had been building up stores of cheddar and expanding storage capacity on this side of the Irish Sea. As the full implications of Brexit were unclear, Ornua was “managing downsides and preparing for uncertainty”, said a spokesman. 

Source: https://www.thegrocer.co.uk/finance/brexit/irish-cheese-suppliers-begin-stockpiling-amid-brexit-fears/572591.article Nov 17 |