131st Edition of Foodcom DAIRY Newsletter

Author
Foodcom Experts
01.06.2022
9 min reading
131st Edition of Foodcom DAIRY Newsletter
We have recently seen pressure on most dairy market prices. Farmers still face problems such as high costs of physical extensions, additional labor, replacement heifers and feed costs, and, of course, market uncertainty.

Recent data show that milk production has increased year-over-year in several Eastern European countries, including Poland, the Baltic States and Hungary. Market analysts note that while more milk is being delivered to dairies than in previous years, the difference between this year and last is narrowing. What can we expect in the near future?

SMP


Industry representatives report that demand is somewhat mixed. While some buyers are still looking to secure coverage, inquiries from others are much more subdued. Demand in export markets is currently very steady. Some producers are offering lower prices, indicating better availability of some brands.

FCMP


FCMP price went up. SMP pulled FCMP-both powders trended upward in the previous week.

SWP


Prices for SWP have fallen slightly in Western Europe and demand is somewhat weaker. Market participants are watching the situation on the whey export market in China and waiting for its development, but we also see downward trends coming from Latin America and the USA.

WPC 80


We see the developing availability of WPC regular. Earlier, we identified that the prices decreased due to the unavailability of regular WPC.Now we also notice a trend of growing prices for the future, which might be since the considerable demand of lecithin in the market for the agglomeration of the product needed to produce the WPC 80 instant.

Butter


Cream, like all liquid products last week, showed it has the potential to return to historically high prices and scored a nearly 4% increase for the week. Prices that were speculated by the buyers two weeks ago were not close to being matched by last week’s cream eminent outcomes.

Cheese


With the correlation between last week’s spot milk price tendency of an increase we witnessed slight uprise in Gouda and Mozzarella cheese quotations. Both cheeses have still been in demand, and the fresh product is not witnessed on the market correlating with their current production forecast. We also hear customers struggling on acquiring products for the Q3 & Q4  period which haven’t been yet secured.

Cream


Last week showed signs that cream prices would be set to follow the demand of the users. With the uprise in cream prices, we saw butter reverting to its 2022 historical peak and such followed other products from this resource. The Cream is always an uncertainty for many when it comes to week to week quotations. Furthermore, we could speculate this trend will follow in the next week as well.

SMC


With relatively tight milk supplies, weekly spot milk rates continue to rise. Typically, this time of year sees the most negative price commentary, as supply chain managers deal with the extreme pressure of the ‘spring flush’. This is when milk inventories rise to their seasonal maximum, stressing all aspects of the dairy supply chain. However, market sentiment has improved over the past two weeks.
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