France, the home of camembert and rocquefort, is to lead a switch of Europe's milk processors to cheese production, as reviving dairy markets reduce the advantage of producing alternatives eligible for state support.

French cheese production is "to bounce back" this year after a 4% decline in 2009 left arguably the world's famous cheese nation raising imports from Germany, the home of wilstermarsch, and the Netherlands, best known for edam. (Both claim gouda as their own).

Even at 2009 rates, France was responsible for, at 1.18m tonnes, more than 17% of European Union cheese production.

The increase will spearhead an EU trend, as higher margins lure processors from the butter and non-fat milk powder markets which, in being eligible for European intervention support, represented a safe haven during the economic crisis.

"Without heavy intervention, the EU dairy industry trends towards increasing cheese production," a report by US officials said.

Parmesan price

Indeed, demand for cheese is rising both among foreign buyers, and those within the region.

Industry figures believe that cheese, "in particular branded cheese, will be the main dairy product in which the European Union can compete on the world market", the report, from US Department of Agriculture staff across Europe, said.

They raised to 530,000 tonnes, from 475,000 tonnes, their forecast for Europe's cheese exports this year.

Within the EU, Italian cheese consumption is showing particular growth, after a "longer period of stagnation".

Prices of leading Italian cheeses, such as Parmesan, have "been increasing remarkably", the report said.

Production to rise 

The increased cheese production will help mop up a rise in milk supplies, after a year when herd reductions – reflected in a 5% rise in dairy slaughter rates in France – cut EU output by about 120,000 tonnes.

"Milk production is expected to increase… as average milk yield per cow is expected to increase," the report said.

However, some countries have hit on other ways of increasing demand, with Czech consumption being raised by the introduction of fresh milk vending machines.

"These were started in the fall of 2009 [and] increased direct milk sales by 21%."