160th Edition of Foodcom DAIRY Newsletter
Long time no see, right? Do not worry, your favorite legenDAIRY newsletter is back! We have been away for a while (well, maybe a little longer), but we are back, as always, with information on everything you need to know about the latest developments in the dairy market, in an accessible and very entertaining format.
It’s difficult to talk about big events or changes in the dairy sector or the industry in general right now, as many producers, distributors and end-users are just getting warmed up after the break. Nonetheless, we have compiled the most important events of the last few weeks in relation to specific products.
The beginning of the year is a time of many forecasts and predictions. While we do not have a crystal ball on our equipment, the events of the last 12 months and the current situation allow us to observe certain trends. The future of the dairy sector will almost certainly be determined by climate and extreme weather events, consumer trends, including the move away from animal products toward veganism and vegetarianism, inflation, energy costs, packaging prices, and technological developments. One thing is certain: there will be a lot going on! It pays to stay informed and reach for reliable sources of information, but you probably already know that, after all you are reading our newsletter right now…
Skimmed Milk Powder
Although gas prices have already returned to pre-Ukraine war levels, many producers argue that the cost of drying the commodity remains high. Presently, customers are buying only for current needs, and few are signing contracts for the next months and quarters. The eyes of all producers are on China. They wonder if the big player will finally return to the market with offers to buy.
Butter has received modest attention in recent weeks, although the not-so-large amount offered from the cheaper Christmas cream was quickly absorbed by the market. As with Cream, Polish producers are trying to maintain a stable price and are not reducing their offerings as quickly and eagerly as in the West.
Mainly European buyers have been out of the office since the holidays. They are expected to return to trading in the coming weeks, especially since manufacturers are already planning Easter production.
For Cheese, market sentiment remains unchanged, with prices easing each week. It is difficult to find a buyer for larger quantities. One might ask if this is even a commodity market anymore…
Spot milk prices are down slightly, which affects most dairy products, especially liquids. Demand is also down a bit, which is typical for this time of year. What surprises many is that the Cream in Poland has increased slightly recently.