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Cheese Production

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General

Cheese production is one of the more difficult milk added value enterprises requiring skill, dedication and innovation.

Production of hard cheese is capital intensive and requires costly maturing. The fresh/soft cheese sector (including mould ripened) may offer the best opportunity (cows, goats and ewes milk).

Equipment outlay can be modest, but at the expense of high labour inputs. Many recipes exist with ample opportunities to experiment. There are numerous traditional methods of making cheese and many varieties of cheese (eg. hard pressed, blue veined, soft, and cream cheese).

The variety of cheese is related to many factors including the milk used,  acidity, starter cultures, length of ripening period, etc. Good manufacturing practice, hygiene/quality assurance, dedication and good marketing skills are crucial.

In 1999 the UK was the 9th largest cheese producer in the world, the 3rd largest importer and 11th largest exporter of cheese (£134 million).  In comparison France, the Netherlands and Germany each have cheese export markets of over £1 billion.

There is clearly room for the expansion of the UK cheese industry for export market and for import substitution.

For a comprehensive overview of cheese production please visit Wageningen University's Food Info Website

Please remember that special consideration must be given to the VAT aspects of diversification as the new activity may not be treated the same as the existing farm business from a VAT standpoint.

Market

UK consumption of speciality cheese (significant imports) shows good annual growth. Mostly these feature distinctive presentation and innovation. Opportunity exists to supplement this market with local sales of `hand made' cheese, targeting speciality outlets according to production capability. Consistency of quality and volume to meet demand may be a problem; co-operation with other producers helpful.

Physical Requirements

About half of the UK producers use unpasteurised milk which leads to concerns by Environmental Health Officers.

Building conversion necessary to ensure physical separation of raw milk activities. Compliance with legislation will require adequate space (to food standards) for cheese making, ripening, packaging and storage. Milk should be used as soon as possible after milking to provide the best quality cheese.

Good facilities needed for storing ingredients/packaging materials and related hygiene requirements. Small laboratory facility recommended.

A good summary of the cheesemaking process is given by The Specialist Cheesemakers Association.

Costs

The following costing information is general and current prices should be sought for budgeting purposes.

Capital Costs

  • Capital outlay: £20-£100,000
  • Premises: £10-£75,000
    • Temperature controlled manufacturing/ripening/storage rooms.
    • Effluent disposal may be additional.
    • Use whey for stock feeding when possible.
  • Equipment: £10-£30,000
    • Cheese vat
    • pasteuriser
    • moulds/mats
    • racks
    • draining trays
    • water heater/wash troughs and sundry items according to type of cheese.
  • Packaging equipment extra.

Running Costs

Up to £1.25 per kg cheese; main components milk, labour, packing and quality.

Marketing/delivery costs additional.

Returns

Market price range £4.25 - £15.00/kg according to type/size of packaging and market outlet.

Margin per kg 70p-£2.00.

Manufacturing 1000 litres milk/week the annual surplus could range £2,500-£12,000.

Cheese sales 140 kg. Positive cash flow unlikely in first few years. Distribution costs critical.

Constraints

Market: supply volume, awareness, packaging. Technology: science and craft. Premises: refurbishing to required standards. Legislation: Dairy Products (Hygiene) (Scotland) Regulations 1995 as amended govern health and the production of milk and cheese in Scotland. Also hygiene and labelling requirements. Cheese Regulations 1970: control composition and labelling. Distribution: cost and organisation.

Training

SAC's Food Marketing Team can deliver bespoke training depending on your specific needs.

Charis can provide a range of activities and courses designed to implement, develop and support New Product Development Strategies for client companies. These vary from standard courses for legislative compliance to more specialist company or product specific courses and workshops.

Leatherhead Food International offer occasional courses of 1 or 2 days duration on product development and legislative matters.

Reaseheath College have the facilities for trial work and product development in their pilot plant area. Also offer a biannual ice cream course of one day (theory) or two and a half day (theory and practical).

Grants

Through the Scottish Rural Development Programme (SRDP) 2007-2013 funding is now available for rural businesses throughout Scotland for diversification and renewable energy projects. Specifically, support is delivered through Rural Development Contracts – Rural Priorities which was launched in April 2008. For further information about what support is available see the Section on Rural Development Contracts – Rural Priorities.

Further Information

Useful Links

Process Plant and Machinery Ltd's cheese production equipment

Publications

The Specialist Cheesemakers Association has a Code of Best Practice covering all aspects of cheese making and retailing.

Cheesemaking in Practice, R. Scott.

Practical Cheesemaking, Kathy Biss.

Facts about Soft Cheese, Dairy Trade Federation.

The Fabrication of Farmstead Goats Cheese, Jean-Claude Le Jaouen.

Cheesemaking for Beginners,Mary J D Gregory.

See Landsman's Bookshop Ltd's Dairy Product Section

Contact

Mr Scott Murray
SAC (Scottish Agricultural College) Work SAC Consulting, Bush Estate, Penicuik,
Edinburgh
EH26 0PH
TelWork 0131 535 3430
Fax 0131 535 3431

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