What a time to be alive! Full of challenges, if we want to be precise. Not long ago, when we wrote about extreme weather phenomena, we referred to droughts recorded almost everywhere in the world during the summer, and in the current issue of our reliable newsletter we discuss the surprising snowfall in… Chile.
There is also a lot going on in politics. In addition to the war in Ukraine, which we have been living with for months, countries are passing more regulations that affect the dairy industry, and the Swiss even had the opportunity to vote on them in a referendum.
Despite the aforementioned obstacles and challenges, creativity floods the dairy industry. The makers of the iconic commercials from the 1990s are back with another viral spot. Scientists are working on a product that will undoubtedly revolutionize the entire industry and define the future of both dairy and plant-based products. Find out all this and much more in the 147th issue of our newsletter!
Continue reading to learn about this week’s market insights.
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SMP
The market for Skimmed Milk Powder may not be particularly active, but it should be remembered that not everyone has stocked up for the fourth quarter of 2022. Last week saw an increase in interest in the product from buyers in Southeast Asia and North Asia. Buyers from the European Union prefer local products to those from New Zealand. It is possible to find commodities on the market at an excellent price, but the ability to buy them is limited by the need for quick pickup. As for all powder products, producers are concerned about the rising prices of raw materials, energy, labor and transportation. At this point, predictions about how the market will behave next year are very uncertain, which adds stress for producers. It is undoubtedly worthwhile to contract and collect now while the market situation is relatively stable.
FCMP
The extinguishment of production at Western manufacturers continues. Last week, interest in older FCMP could be seen, driven by their attractive prices, especially compared to fresher products.
MPC 85%
Every week we see more and more interest in Milk Protein Concentrates. There are few products on the market and manufacturers are constantly raising prices – how long will this trend last? What we do know, however, is that MPC is currently in a counter position to WPC, of which there are sizable quantities in stock.
Gouda/Edam
The cheese market is characterized by high prices and stability. The reason for the current market situation is an increase in customer interest in the product. This increase, in turn, is related to the seasonality of interest and the return of children to school.
Butter
Last week we saw an increased buyer’s interest in Butter product. There was a two-day peak in Cream prices which translated into an increase in producer bids up to 7150 EUR/MT EXW PL. The Irish product is offered at a competitive price of 6900-7000 EUR/MT EXW IE. Towards the end of the week, tempers cooled and Polish producers returned to prices around 7000 EUR/MT EXW.
Cream and SMC
In general, there is more milk available in Europe than it was in the same period last year. However, prices for all liquid dairy products remain high in Poland. Both Whole and Skimmed Milk, as well as Cream remain high, which of course translates into high prices for other products.
