Chinese retaliation to Lithuanian business can threat the dairy sector and processors are looking for another routes

After Taiwan established its office named the Taiwanese Representative Office in Lithuania, China demand that Lithuania should withdraw its ambassador in Beijing. This led for Lithuania to cut business ties with China, which eventually may impact the dairy sector. Dairy processors have managed to resume exports of cheese to China by changing the shipping route on its way down to the mainland through Poland. However, products which were initially for Chinese market, are now being partially exported to other markets as buyers are ceasing purchasing. For the products shipped through Poland, costs have not risen significantly according to a local producer. And even some manufacturers were reportedly operating this way before. Price remains flat for the time being but it can decline if other markets are not absorbing its current supply. Semi-hard Gouda 45% fat is sold at EUR 4 per kg ex-plant in 3.5 – 3.8 kg/block.