ALAN JENKINS | JUNE 25 BLOG

They say ‘time flies when you’re having fun’ and, although I enjoy my job immensely, it’s hard to believe that we’re already halfway through the year! Nevertheless, as we look forward to meeting old friends, and making new ones, at Summer Fancy Food in New York, it’s also a good time to reflect on what the year has brought so far, and where we see things going over the next six months or so.

2025 to date has of course witnessed considerable challenges, change and uncertainty when it comes to exporting cheese. The impact, scale and timing of tariffs have certainly been prominent in all of our thoughts. However, whilst inevitably the ‘squeaky wheel’ has grabbed the attention, there are many other aspects of the export market that are making us pause for thought.

The imposition of a 10% tariff rate (as I write this today!) on British cheese being imported into the US and the subsequent increase in selling prices for the consumer is clearly unwelcome. However, we have been here before with tariffs; we’ve weathered the storm and come out the other side with positive market growth. Indeed, currently, sales in the US of specialty cheese and other quality food and drink seem to be holding up well, with mid to higher earners still feeling confident enough to treat themselves.

Of course, we are not being complacent about tariffs, but other factors are equally on our radar — not least currency fluctuations. The US dollar has lost value since the start of the year. At the start of January, £1 sterling was worth $1.23, but is now at a yearly high of $1.36, which represents a swing of 10.1%. If this trend continues, then it is likely to put further upward pressure on the price of imported goods. As such, there is certainly potential for cheese prices to rise further based on currency alone, even before one takes into account increasing cost pressures linked to inflation in milk and manufacturing prices. 

Obviously, we recognise that we can’t just keep hiking up retail prices as this will inevitably lead to a diminishing in consumer demand. As such, we are working closely with our long-term, highly valued customers and distributors in the States to address ways that we can keep specialty British cheese prices affordable and accessible for US consumers. Whether this involves seeking to identify the most efficient routes to market, reducing wastage, or changing the size of our packs to maintain an acceptable price point, we remain laser-focused on delivering value.

At the same time, we are continuing to invest in bringing to market innovative new branded and private-label products and pack formats that we believe will continue to grow the love affair US consumers have with British cheese. A great example is our new Somerdale Truffler Cheddar, which combines moreish Mature English Cheddar with the rich, intense umami flavour of Black Summer Truffles.

In keeping our offer fresh and exciting, but also still affordable, we believe we will be able to sustain the progress that we have made in building a successful market for our products in what we shouldn’t forget is the world’s largest and most prosperous nation.

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