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UK & European Dairy in Flux: Understanding Market Volatility Amid Global Disruption

In April 2025, the global dairy market was jolted by a significant shift when President Trump announced what he termed “Liberation Day” – a new wave of tariffs aimed at recalibrating U.S. trade relations. For the UK and European dairy industries, this move marks not just a challenge but a pivotal moment. As the U.S. imposes a 10% tariff on all imports, with a steeper 20% levy on European dairy, the implications are far-reaching – and the clock is ticking. For the UK, the stakes are immediately clear. The U.S. has long been a vital market for British dairy, particularly cheese, which forms a cornerstone of export revenues. But these tariffs are about more than just price hikes. For UK producers, it’s about market access. With the U.S. being the second-largest destination for UK agrifood exports, a 10% tariff could mean a shrinking pie for UK dairy producers who are already operating on tight margins. The simple fact is, U.S. consumers may turn to alternative suppliers if British cheese becomes too costly. And it's not just a matter of trade figures. For British dairy farmers and producers, these tariffs come at a time when the industry is still recovering from the effects of Brexit and COVID. The added pressure could make it harder to remain competitive, especially for small and mid-sized producers who rely on established relationships with U.S. buyers. For these businesses, the uncertainty created by new tariffs is a significant concern – and it will require swift, calculated responses. Across the Channel, the situation is equally challenging for European producers. The EU's 20% tariff on dairy imports could undermine the longstanding relationship between European cheese producers and U.S. consumers. From Italy’s Parmigiano Reggiano to France’s Roquefort, these iconic cheeses have made a name for themselves in the U.S. market. But if costs rise too quickly, European cheesemakers could see demand dwindle, leaving them scrambling for new avenues of growth. Swiss producers are facing an even steeper climb. With tariffs on Swiss cheese products approaching 31%, the threat to market share in the U.S. is more immediate. The sheer size of the penalty means that Swiss cheesemakers will have to work even harder to convince U.S. buyers that their products are worth the premium – and that’s no easy task. But while this all sounds like a serious blow, it's important to look at this moment through a different lens. Yes, the tariffs are disruptive, but they also present an opportunity for the UK and European dairy industries to reconsider their strategies. It’s about adaptability, diversification, and maintaining that competitive edge that has made British and European dairy some of the most sought-after in the world. What’s Next for Dairy Producers? For UK and European producers, the first step is to understand that the world isn’t going to wait. The tariffs may slow things down, but they’re also an opportunity to pivot. Expanding into new markets outside of the U.S. is a natural first step. Asia, the Middle East, and parts of Africa are seeing growing demand for quality dairy products. There’s a chance here to turn a challenge into a broader, more diversified international strategy. At the same time, the power of quality cannot be underestimated. British and European cheeses, many of which are protected by geographical indications (GIs), have a level of authenticity that’s hard to replicate. Whether it’s the unique terroir of French cheeses or the rich history of British cheddar, these products stand out in a crowded marketplace. If the tariffs push prices higher, it’s important for producers to highlight the value inherent in these products – they’re not just food, they’re a cultural experience. And then there’s the political side of things. This is where industry bodies and producers themselves can make a real impact. Engaging in trade discussions, lobbying for better terms, or even exploring potential exemptions could make a difference in how these tariffs are structured long-term. Moving Forward While these tariffs create uncertainty in the short term, they should also act as a reminder that markets are constantly evolving. The UK and European dairy sectors are no strangers to change, having navigated everything from Brexit to global supply chain disruptions. This moment, while challenging, is yet another opportunity for the industry to recalibrate, innovate, and come out even stronger. The coming months will be crucial. Producers must be proactive, strategic, and ready to act quickly. The world is watching – and with the right response, UK and European dairy can continue to thrive in an increasingly complex global market.

Welcome to the first edition of our content-driven and affordable dairy newsletter! I’m thrilled to bring a fresh perspective to an industry I’m deeply passionate about. Having grown up around the countryside, I’ve witnessed the vital role local produce plays in our communities and the importance of supporting the businesses that make it possible. This newsletter is designed to foster collaboration within the dairy community, highlighting sustainable practices, featuring insights from industry leaders, and offering a platform for meaningful engagement.

A s a first issue we’d like to know what it is that you’ve enjoyed and what you’d like to see more of other than the addition of advertorials in the next few edits. We appreciate your opinions and want to make this newsletter not only about you but for you- to enjoy!