While U.S. tariff uncertainty is sending shockwaves through the important American market, Bornholms Andelsmejeri is gaining ground among its neighbors. However, CEO Per Olesen warns that significant currency losses and ongoing tariff uncertainty are overshadowing the new export opportunities in North America.
Bornholms Andelsmejeri is currently experiencing a marked shift in trade patterns across the North American continent. Restaurants and retail chains in Canada and Mexico that have traditionally looked to the United States for supplies of specialty cheese are increasingly turning their attention to Denmark and Bornholm. This is a direct response to the political and trade-related uncertainty surrounding the U.S., which has opened the door for the Bornholm-based dairy’s high-quality products.
According to CEO Per Olesen, the trend is clear. Around a quarter of Bornholms Andelsmejeri’s revenue comes from the U.S., but it is the neighboring countries that are now showing the greatest interest in switching suppliers. Speaking to Børsen, the CEO notes that many buyers have grown tired of trading with the U.S.—a shift that is being felt directly in demand in Klemensker.
Exchange rates eat into profits
Although the new market shares in Canada and Mexico represent a strategic win, the situation is far from straightforward for the Bornholm cooperative dairy. Global turbulence comes with a significant price tag that is clearly reflected on the bottom line. An unstable dollar exchange rate alone has resulted in a 14 percent loss for the dairy, underscoring the financial risks of having a strong exposure to the U.S. market.
At the same time, new tariffs and general political uncertainty are creating major challenges for planning. Bornholms Andelsmejeri already felt the consequences toward the end of the year, when tariffs negatively affected the crucial Christmas sales in the U.S. For the dairy industry, the situation at Bornholm stands as a timely example of how even high product quality and market leadership in blue cheese can be challenged by macroeconomic factors and geopolitical instability.
By Maja Løvstrup
Source: Food Supply and Børsen
Photo: Colourbox
