Flooding in Thessaly caused by Cyclone Daniel will lead to a surge in feta prices.
Flood disasters pose major challenges to Greece’s “white gold” production, as Thessaly was home to about 40% of all goats and sheep, as well as factories that produced the milk used to make its signature cheese.
According to first estimates, domestic feta production will be reduced by 10-15%, whatever consequences this may have for meeting the needs of both the domestic market and exports. Forecasts for feta are disappointing: the price per kilo ranges from 13 to 16 euros, and is estimated to exceed 20 euros.
Although feta, one of the most valuable assets of Greek exports, can be produced in six other regions, Thessaly stands out both in the production of raw materials (primarily sheep’s milk, secondly goat’s milk) and in the production of cheese. Leading region with 40% of soft cheese production and 23% of hard cheese production.
So the loss of thousands of sheep and goats on the Thessalian plain means that until this gap is filled (if it is filled, since the cost of an average herd with 400 sheep is at least 200,000 euros), feta production will continue to decline.
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SEK President Panagiotis Peveretos said that “damage to livestock in Thessaly will initially affect prices, but not significantly. Production will resume in two months, despite huge livestock losses.”
As for the significant increase in prices, he noted that “they are not justified.” And this is because there is a product that is produced and ready for sale. The key to controlling prices and preventing speculation is control. Mr Peveretos harshly criticized those who sell feta from 12.5 euros per kilogram, while he does not think it will reach 20 euros.
He further stated that “a significant increase in prices will lead to a sharp reduction in consumption. Even at 15 euros, at a price of 16 euros per kilogram, demand will decrease. Households will switch to white cheeses made from cow’s milk. Feta exports in value terms amount to 650 million euros. The total production of feta cheese is 144 thousand tons, of which about 90 thousand are exported abroad.
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