155th Edition of Foodcom DAIRY Newsletter
No new plagues this week, that’s definitely a “hooray”! This week’s Edition of the Dairy Newsletter is all about innovation. In the news section, learn more about what solutions individual companies are implementing to grow and save the planet. As long as no one is working on an even more bloodthirsty breed of snail, we are fine with everything. Are you bored of this joke yet? Okay, not everyone needs to have a sophisticated sense of humor.
Joking aside, the world situation remains dynamic and serious. Bird flu, the epidemic of which is being watched with concern all over the world, will most likely be with us at least for the time being. A few days ago, the first major outbreak of the disease in wild birds was announced in Peru. A zoo in Berlin was closed last Friday without warning for safety reasons related to the disease. A wave of cases in Europe and the United States has already led to the culling of several million poultry birds, and there are no signs that the problem is going away.
It is also difficult to be optimistic when analyzing the dairy industry itself. In Tunisia, rising production costs mean that many milk producers cannot afford to sell the product at the price expected by the government, leading to a drastic decline in production. As a result of ineffective government policies, the problem is not being solved, farmers are becoming poorer and consumers are becoming more bitter.
The general situation is that there is more milk on the market than expected and less demand than last year. How will the situation develop? Be sure to read our newsletter to keep up with everything!
There is a slight movement in the Skimmed Milk Powder market. Thanks to the increased interest, product prices have not fallen. Selected producers and buyers currently have empty warehouses, which is causing them to contract on an ad hoc basis to meet current needs. Few buyers are interested in signing contracts for the first two quarters of next year, which was the norm in November. Most likely, many companies that still have unsold goods in their warehouses will want to get rid of them before the end of the year, with payment expected by the end of 2022. Therefore, the price could fall in the near future. Those who are most determined to sell will offer product with good payment terms, below the production cost and purchase price. There have already been offers on the market for several hundred tons at less than €3 per kilo, which quickly disappeared from the market.
Different Full Cream Milk Powder prices can be found in Poland, and different ones in Western Europe. There are first signs from Polish buyers that product from the West has appeared on the domestic market at lower prices. In general, the current situation of the product can be reduced to two points of view: on the one hand, it is one of the few dairy products whose price is relatively stable, and on the other hand, there are already offers with lower prices from the West. At this point it is difficult to estimate how the market will behave, as we are not at the peak of the FCMP production season. Many manufacturers are focusing on SMP production.
While interest in Whey Protein Concentrate has waned, Milk Protein Concentrate has remained relatively stable in this regard. Milk Protein Concentrate remains the king of proteins and has seen only a slight price correction, and demand for this commodity remains high. It is one of the few dairy products whose situation has been so stable recently.
The price of raw milk has fallen recently, which has reduced the cost of cheese production, which in turn has led to a decline in cheese prices. There is enough product on the market to meet the current demand. It can be said that compared to a few months ago, the situation has turned 180 degrees, there is now enough cheese on the market and demand is no longer so strong.
The only factor currently giving stability to the Butter market in Poland is the slight upward trend in demand for Cream. The demand for Butter is not very high at the moment. Buyers are postponing their purchases in anticipation of more satisfactory offers.
At the beginning of the past week, the price of Cream has fallen in connection with the decline in spot prices for milk. In the second half of the week, the situation has stabilized.
The price of Skimmed Milk Concentrate has remained stable in recent days. Larger quantities of the product are expected to hit the market closer to the holiday season.