144th Edition of Foodcom DAIRY Newsletter

Experts suggest that the current crisis will permanently change the dairy market. It is very likely that the upcoming year will be the time of the fittest for many dairy businesses. The present situation in the global market is complex: some producers are going green, others are successfully expanding with the help of funds, while some businesses and consumers are deeply affected by soaring inflation.

The issue of global warming is becoming a more significant concern in most, if not all, branches of the economy. Scientists are working tirelessly to solutions for its effects.  Recent studies conducted in Canada give hope that thanks to selective breeding, the producers will be able to create herds resistant to high temperatures.

Preventing the effects of global warming is an important issue in dairy farming today. Some enterprises are already gained awareness of the issue and are sculpting their future with monitoring and minimizing their carbon footprint. There is no doubt that investing in new technologies and high-quality products is not only the answer for needs of the future. It is also a solution for consumers, who are facing the biggest impact of the rise in food prices.

We are witnessing numerous changes in the contemporary dairy trade. The Belarusian market has changed dramatically in the last four years by merging companies into powerful tycoons. Biggest Italian dairy companies are forced to seek help from the government due to the enormous energy prices. American farmers are fighting many battles simultaneously because of the geopolitical situation, weather, and supply chain problems.

Next week, traders from many countries in Europe, including traders from Foodcom S.A. are attending one of the most important industry events – SPACE. The fair takes place from Tuesday 13 to Thursday 15 September at Rennes Parc-Expo in France, and is aimed at all professions related to animal production, including dairy cattle. The program of more than 100 conferences will address a variety of indispensable issues including feed, livestock practices, international issues, environmental challenges, etc. Certainly, the content related to the event will be the leading topic in the industry in the coming days. So if you are planning a business meeting – right now is a great time.

Continue reading to learn about this week’s market insights.

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SMP 

Many producers have already contracted quantities for Q4 2022 in the last few weeks. Eastern Europe offers lower prices for Skimmed Milk Powder, while Polish dairy manufacturers are quoting more expensive product, not having the possibility to order so far into the future. Last week, numerous buying offers were originated from the Middle East. It is important to keep in mind that a significant part of the traders were buying only to fulfill current needs. It is said that the warehouses of the biggest end-users are not 100% full yet.

FCMP

The FCMP market did not show any significant fluctuations this week. The prices are stable both in the West Europe, and in Poland. The price level is constant – above 5 Euro per kilogram. Presently, the outside-Europe market is offering a much cheaper product, which is not often traded.

WPC

The WPC market is a subject of speculation in terms of predicting its future. Currently, there are temporary opportunities in buying cheap products only with fast delivery. Simultaneously, those are not the volumes that would make it possible to predict reliable future price right now. Due to the higher SMP quotes increasing inquiries for WPC 35 are expected. This is after Skimmed Milk Powder remained shadowed by the whey powder.

Gouda/Edam

As standard for this time of year, cheeses are rebuilding their position in the range of dairy inquiries. In terms of the spot market, gear ratio is noticeable in comparison to the previous week. Nevertheless, demand for mozzarella or cheddar commodities are stable for the time being. Gouda’s price has increased, placing it around €5.20 per kilogram.

Butter

Due to the higher price of raw materials for another week, the rise in butter price was observable. Butter producers are offering their product at around €7 per kilogram, while some producers are already starting quotes at €7.10 per kilogram.

Cream & SMC

Prices of liquids were rising during last week. Milk prices in Europe rose around 2 percent, which clearly affected other products. The cream went up in the entire Europe. Production in both Eastern and Western European regions fell short of expectations. This month will show whether milk prices would be at a similar level as in the same period last year. As it was anticipated, the US production of the cream was a little lower before Labor Day.