Lithuanian cheese ripe for U.S. export boom

  • 2002-05-16
  • Tassos Coulaloglou
VILNIUS

While it may not be as famous as French Brie or Italian Parmesan, many around the world may unknowingly be consuming Lithuanian cheese, one of the country's most successful export products.

With quota barriers to be lifted upon entering the European Union, and just a small market share now in the United States, Lithuanian producers see plenty of room for expansion.

In fact, Lithuanian exports are already quite impressive. With 15 million tons of cheese sent to the United States last year, Lithuania was the third biggest cheese importer after France and Italy, with 7 percent of the imported cheese market.

According to the Lithuanian government's European committee, quotas of 6,000 tons per year currently restrict exports to the EU, but this could increase by 600 tons per year after accession.

The four biggest Lithuanian cheese producers are Zematijos Pienas, Vilkiskiu, Pieno Zvaigzdes, and Rokiskio Suris. In 2001, total exports by Lithuanian dairies exceeded 500 million litas ($125 million). The biggest foreign markets were the United States, the Netherlands, Russia, Latvia and Uzbekistan.

Rokiskio Suris is the biggest domestic cheese maker, producing some 23,000 tons a year. It currently holds a 20 percent to 25 percent market share in Lithuania, and more than 50 percent of its sales are exports to the United States. The company mainly produces two types of cheese: a hard cheese like Parmesan and a semi-hard cheese similar to Gouda.

According to Darius Norkus, director of marketing for Rokiskio Suris, most of the cheese exported to the United States is turned into grated cheese.

With Lithuanian cheese now accounting for less than 1 percent of the total American cheese market, Norkus seemed optimistic about growth potential and is confident about product quality.

"Ten years ago we were producing only 8,000-10,000 tons, so our growth has been quite good," he said. "We are optimistic these numbers will continue to grow as we expand further into the U.S. and European markets."

Currently, Rokiskio Suris accounts for about half of the cheese export quotas for Lithuania to the EU.

Market restrictions operate differently in the United States and Europe. While Brussels imposes quotas but doesn't levy import duties, Lithuanians can export as much as they like to America so long as they are willing to pay 21.3 percent in tariffs.

Norkus is confident that his firm will do well once it joins the EU, even despite Brussels' high subsidies.

"We have never had any complaints about our product, only praise, and as long as we are on equal footing, we will thrive," he said.