British cheese: Overcoming the odds

Suffice to say, it’s been a tumultuous few years for the British cheese sector. Amidst all the changes and uncertainty, many producers and cheesemongers have been forced to cease operations, while others have been buoyed by the support of individuals, businesses and nationwide campaigns. So in the wake of these trying times, how is the British cheese sector faring today? Has the dust settled, and will recent challenges help the industry better prepare for the future?

Feeling the impact
Brexit and Covid-19 were arguably the biggest challenges faced by the British cheese sector for generations. While the pandemic caught many off guard, Brexit has been more of a slow build, yet both have had an impact on businesses that is still being felt today.

“Covid had a direct, quick impact,” explains Rory Mellis, director of Scottish artisan cheese retailer I.J.Mellis. “It was definitely more difficult to adapt to, and we’re still seeing the impact of it, including changes in buying patterns. Brexit, on the other hand, has had more of a slow impact, and people are now starting to realise the effect on prices and transport, which is trickling down.

“I think in terms of the cheese world, though, we got a lot more exposure out of the past few years,” Rory adds. “Things spiked quite drastically, but people have gotten into the swing of it now, and I think it will steadily increase. It’s a good thing for the British cheese industry, but you also have the other end of the stick: British cheesemakers who are exporting are finding it a bit more difficult now. But I think all in all, it’ll balance itself out.”

For NFU chief dairy adviser James Osman, it may have been a rollercoaster ride, but things are certainly looking up: “The cheese sector has seen plenty of volatility, particularly during Covid, as demand shifted from foodservice to retail rapidly,” James says. “But on the positive side, we have seen increased cheese (and dairy) consumption as a result of changes in buying habits during the pandemic. While things never seem fully settled, the challenges over the past few years have shown the resilience and innovation in the UK dairy sector, which is now in a strong position.”

Interestingly, particularly during Covid-19, much of the dialogue revolved around what the ‘new normal’ may entail. But with many businesses nearly returning to pre-pandemic operations, it seems the new normal is, in fact, the old normal – but with a few tweaks, perhaps.

For Clare Jackson of Suffolk-based Slate Cheese, the lifting of restrictions earlier this year has meant customers feel more comfortable to step into the shop and sample cheeses, which offers her team a chance to upsell. Though screens have been lifted and masks are optional, one thing Clare will not revert back to is using cash.

But what about the e-commerce side of things? The majority of retailers saw a huge uptick in sales during lockdown, but it seems to be a mixed bag for cheesemongers today. While Rory notes that, perhaps predictably, ecommerce sales have dropped since lockdown, for Slate Cheese, this is one side of the business that has continued to grow. Indeed, it’s become a priority, along with marketing through social media and regular newsletters to further grow the online customer database, which grew seven-fold last year alone.

Learning from the past
While independent businesses in the cheese sector navigate their way through further challenges such as inflation, staff shortages, supply interruptions and environmental concerns, it seems that overcoming past hurdles could better help companies face future threats.

“Once you’ve gone through something like this, there’s not much that can scare you,” Rory says. “It’s definitely strengthened us as a business: having the systems in place and updating our website have made a big difference in our overall structure.”

For businesses like Rory’s, the continuous need to adapt was the one constant during the pandemic, and arguably the biggest challenge. But it’s a skill that is still vital today, as James explains: “Learning to adapt has been the key to survival. At the moment, it is impossible to accurately plan or budget, because things are changing almost every day, so being able to quickly adapt is crucial. We also need to see more co-operation across the sector, with farmers and processors working together.”

This sense of cooperation, community and networking is key for the sector, and something Clare believes was helped by the pandemic’s virtual boom.

“A good thing that came out of Covid was that we connected a lot with cheesemakers and those in the industry over virtual platforms,” she says. “I think alongside face-to-face events, that virtual side is continuing, so it’s the best of both worlds.”

Future outlook
A huge drive to support British farmers, producers and businesses during the pandemic and Brexit no doubt tremendously helped the sector to be in the strong position it is now. And while the messaging itself has slightly died down, sales of British cheese has not. It seems the message is consolidating in people’s minds that there are some amazing British cheese equivalents to popular European varieties. Combined with a price rise in European produce, demand for more ethical products and a continued drive by organisations like the NFU, it places British cheese in prime position both locally and globally.

“We are seeing a shift in consumer perceptions, and the drive for local produce and traceability helps our sector,” says James. “We are also seeing a huge push to export more, and some really positive demand for British cheese across the world. The UK dairy sector is also working hard to engage with consumers more and tell our story, to help counteract negative press that has been received.

“The dairy sector has overcome many challenges over the years and we have no doubt it will continue to do so. Global demand for dairy is really strong and Britain is ultimately in a good place to produce more dairy. Communication is key – farmers need to be able to work with the whole supply chain and also communicate with consumers.”

Looking ahead, there’s one thing many in the industry can agree on: as British cheese makers continue to innovate and retailers push local cheeses into people’s baskets, opportunities are rife.

“We’ve always been renowned for Cheddars and hard cheeses in the UK, but I think with increasing prices of European cheeses there are new opportunities for British makers to introduce soft and washed-rind cheese,” Rory says. “There’s also a good gap in the market for someone offering things like lactic goat cheeses – just taking a few staple classics that are produced in the EU, France and Spain, and making something similar here in the UK – I think that’s where the gap is.”

“I think the sector is pushing forward with lots of new and creative ideas,” Clare adds. “There’s a lot of innovation and creativity happening: we’ve had the new Yarlington cheese in the last month from King Stone Dairy, which is very exciting. The sector is seeing a lot of change in dairy farming and an increased awareness of reducing carbon footprints for cheese production. There’s also a lot of creative thinking around solutions to being more sustainable. I feel very hopeful for British cheese.”