Welcome to our first Newsletter this year! Join us on an exciting journey through the trends and challenges of the dairy market. Discover what’s shaping cheese prices, the dynamics of the dairy fat market and much more. Don’t miss this opportunity to stay on top of the latest insights that could be crucial for your business!
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Hottest Products of the Week
Prices for Gouda and Edam cheese have adjusted after the holiday season, a common market trend. However, they remain around the key 4 Euro mark, indicating stable demand. Meanwhile, Mozzarella hovers around 3.70 EUR/kg, showcasing its steady market presence.
The fat market experienced an unusual situation this week, with prices initially falling but then showing a rebound. The recent rise is due to higher cream prices rather than increased demand from buyers. Retail orders are down, which is typical after an active holiday phase.
Last week, there was a positive factor that could drive up the price of Skimmed Milk Powder, or at least hold it at the current level, and it was a tender for the Algerian market. Almost 25,000 tons were contracted at a quite decent price of 2760 EUR/mt CFR Algeria. At the same time, the availability remains unchanged and good.
Full Cream Milk Powder has recently become less available as a few dairies in Europe have switched to producing other powders in their drying towers. However, it’s still possible to find it on the market. We don’t expect a price boom in the coming weeks.
Invariably, Whey Protein Isolate is offered at a high level, especially with prompt delivery.
End customers are willing to pay the asked price when they need to fulfill their production requirements.
Prices for liquid dairy products remain stable and show neither sharp falls nor rises. In line with seasonal expectations, milk supply is gradually increasing from week to week, which is contributing to price stability.
New Zealand dairy exports are delayed by up to three weeks due to rerouting around the Red Sea and Panama Canal. The Red Sea route is avoided due to military tensions, while drought has reduced Panama Canal capacity. This has led to increased transit times and potential congestion, impacting global shipping and key markets.
Australian dairy farmers are facing high milk prices due to protections set in 2020, leading to a price gap with New Zealand and a surge in cheaper dairy imports. This situation is affecting local processors‘ competitiveness and profitability. The government’s dairy code, which sets the milk price annually, is under scrutiny as it keeps local prices high. As a result, some major dairy manufacturers in Australia are adjusting their operations and the government is considering changes to the pricing mechanism.
In 2023, Minnesota and Wisconsin each lost 7.4% of their dairy farms, amounting to 146 and 455 farms respectively. Minnesota ended the year with 1,825 farms, and Wisconsin with 5,661.
In 2023, the DMC program aided many farmers with payments during certain months, though no details on 2024 enrollment have been released. Dairy product pricing sees Class IV maintaining a premium over Class III. Stable domestic demand for butter offsets a decline in exports, and there are no concerns over milk supply at present.
The Ukrainian dairy industry is grappling with a challenge of raw material scarcity. The number of cattle is declining, while the proportion of milk exports to EU countries has been on the rise over the past two years. Vadim Chagarovsky, the chairman of the Board of Directors of the ‚Association of Dairy Enterprises of Ukraine,‘ brought these issues to light during the Conference ‚Dairy Business – 2023.‘ Despite these hurdles, there was a 5% increase in milk processing in 2023.