156th Edition of Foodcom DAIRY Newsletter
December is a magical time. The atmosphere is special, people seem to become kinder and more understanding, and everyone looks forward to the upcoming events. Yes, you guessed it right: We are of course talking about Food Ingredients Europe in Paris, where you will find us in Hall 7.1, Stand G60. If you have not made an appointment with us yet, reply to this email right away, because our schedule is filling up fast!
A lot is going on. In this Edition of Foodcom DAIRY Newsletter, you’ll read about QR codes you can use to check the welfare of the cow your milk comes from, innovations in milk packaging, protests and new developments in energy production.
And what is happening in the dairy market itself? There’s a bit going on, although many have reason to complain about the current changes and trends. The abundant availability of spot milk, which is greater than in the same period of previous years, is driving down prices for almost all dairy products. Demand from China, while still expected, is not materializing for the time being.
The observed stagnation in the Western Skimmed Milk Powder markets is caused by the behavior of traders who made the decision to buy the commodity earlier, when it was available at a lower price, making the recent decline minor. We still see opportunities to buy powders, especially SMP, as part of Black Friday deals, but keep in mind that these deals are only available until stocks are depleted.
Full Cream Milk Powder has not followed the trend of Skimmed Milk Powder. Despite the drop in price, most players have not become active yet. If the price continues to fall, traders will probably decide to buy soon. It is interesting to see how the market situation develops in the long term. Just a few months ago, the price difference between FCMP and SMP was almost half of what it is today.
Cheese price trends continue to follow milk prices. Currently, the milk available on the market is relatively cheap, which makes it possible to predict that the products made from it, such as Cheese, will also be offered at relatively low prices in the first quarter of next year.
Anhydrous Milk Fat
The valorization in Cream in Central Europe was also reflected in the prices of Anhydrous Milk Fat, which increased slightly. AMF is richer in fat than Cream, which encourages purchases, especially since the product is now offered at a lower price than in the recent past.
Butter is one of the few products whose price has increased recently. As the price of Cream had a significant impact on Butter last week, prices in Central Europe have risen significantly. In the West, there are more and more offers for winter Butter. The quotations allow the prediction of declines in the coming quarters.
The price of Cream is increasing due to high demand before the holidays. There are many inquiries. Dairies have already started pre-Christmas production. It is very likely that the trend, which is currently observed throughout Europe, will continue for two to three weeks and then weaken.
Prices for Skimmed Milk Concentrate fell slightly last week. Large quantities of the commodity are available on the market. Around the holidays, the price may fall a little further, and the large availability is expected to continue.