161st Edition of Foodcom DAIRY Newsletter

Author
Foodcom Experts
18.01.2023
9 min reading
161st Edition of Foodcom DAIRY Newsletter

Congratulations! What have you achieved, you ask? Couple days ago was the infamous Blue Monday, and since you are reading these lines, it means that it probably was not that bad and that you managed to visit our website today, which was not necessarily easy.

Some might have expected the dairy market to already be back in high gear after the holiday slowdown, but that’s not the case. For many products, the situation has not changed much since last week, and only some of them have seen a price correction. Of course, this does not mean that nothing happened. Check out what is worth knowing about the events of the last week!

Skimmed Milk Powder

Sales of Skimmed Milk Powder were also observed in the market during the holidays, but are not yet sufficient to record major changes or buyers committing towards volumes for H1 covering. Sales do happen due to the fact that cheaper milk is available in various countries. However, in some parts of the European Union the decrease is not so strong, and the surplus is still not so large.

Butter

We have seen that the prices of Butter follow the trend of Cream and also products become cheaper where the milk flows well and has to be accommodated in something, this time it is for Butter. There is currently no demand for large volumes from buyers, and people prefer to buy on a spot basis rather than standard quarterly or annual bookings. We are also hearing rumors that cold stores are still being used up on Butter slots and whoever has to liquidate the stocks – are at present searching for sales within. 

AMF

The comparison of prices for AMF can be observed in the market in different geographical areas. While prices in Germany/Belgium/France/Spain tend to be on the high end, in the CEE region they tend to be on the low end, making it difficult to price this product and even more difficult to sell it to buyers willing to commit to spot volumes which don’t exceed a full load. It is important to remember that Easter production for pastries is just around the corner, so that market demand will probably pick up soon.

Gouda/Edam

Prices continue to drop from week to week. Producers are desperately looking for sales in Mozzarella, Edam/Gouda and other cheeses, as production forecasts must be met, but no sales are materializing. Compared to the big players from Germany and the Netherlands, other countries have the flip side of the coin when it comes to cheese and have not yet followed the trend of lowering prices, and we see significant differences in prices for similar products in other parts of the continent.

Cream

In some regions, Cream has decreased slightly in the past week, while in others it has remained stable. Post-vacation production has already begun, and interest in this commodity has increased after the holiday slowdown.

 

What else?

Europe

Agriculture in Cumbria (in fact, not only there) is undergoing a period of intense change

Challenges for farmers include navigating the post-Brexit reality, galloping inflation and also environmental pressures. In these heated times, farmer-led cooperative First Milk has opened a multi-million pound investment in its Lake District Creamery in Aspatria. The goal of the investment is to increase the capacity of the existing facility and produce more cheese. Certainly, not a cheesy plan!

Netherlands-based FrieslandCampina Ingredients has entered into a strategic partnership with California-based biotech company Triplebar Bio to develop and expand cell-based protein production through precision fermentation

This latest partnership follows the November 2021 launch of the company’s first range of plant-based proteins, Plantaris, in collaboration with AGT Foods. The resulting product is expected to be bioactive proteins that support human health and nutrition in early life and adulthood. The future is now (still).

British livestock in danger

The British House of Commons will soon debate the Retained EU law (Revocation and Reform) Bill, which is intended to repeal regulations that have been transferred out of the European Union and, according to the bill’s supporters, are to lose their validity as a result of Brexit. What worries the representatives of animal welfare organizations is the fact that about 80% of the regulations protecting animals in the United Kingdom originate from the European Union, so their repeal, without replacing them with new ones, could pose a major threat to animals, including livestock.

The Americas

The latest data show that the U.S. dairy industry finished 2022 with strong exports

Exports of dairy products from the U.S. hit a record in 2022 and will continue to increase in 2023. It’s nice to learn that 2022 was not only a record year for inflation, extreme weather events and financial market volatility…

Exports of Irish milk powder to North America have increased significantly recently

This is due to production difficulties experienced by infant formula manufacturers in the United States. Exports of specialized nutritional milk powders from Ireland had a value in 2022 that was more than three times higher than in 2021, but experts believe that this result will not be repeated in 2023, as the situation in the United States is expected to return to normal by spring. It looks like the US will ‘got milk?’ for children as well.

The price of eggs has tripled in some states compared to the same period last year

Eggs are one of the most popular sources of protein in Americans’ diets, largely because more and more people want to cut back on meat consumption. As a result, demand for eggs has been on the rise for years, while at the same time supply has plummeted lately due to the avian flu epidemic that many countries around the world, including the United States, are dealing with. Does this mean that dairy products are becoming more popular as an alternative source of animal-based protein? Time will tell.

Asia & Oceania

China’s dairy industry is struggling with overproduction due to weak consumer demand

Low prices and difficulty selling fresh milk are taking a heavy toll on producers. Many dairy farmers have begun dumping their products and killing animals to avoid further financial losses. The cause of these problems is said to be the cessation of milk deliveries to schools due to the pandemic situation, which has led to overstocks of raw milk in the supply chain.

Amcor, an Australian-based manufacturer of innovative eco-friendly packaging, has announced the European launch of its new PrimeSeal and DairySeal Recycle-Ready thermoforming films

The innovative products are dedicated to meat and dairy products, offering superior packaging performance and improved circulation. The fresh packaging is expected to have up to an 80% lower carbon footprint than existing solutions, the manufacturer asserts.

The Yili Group, one of the best-known dairy brands in China, has come up with an unusual way to promote itself

Titled ‘Online Tour: Networking Yili’s Global Value Chain,’ the new platform will give audiences around the world a closer look at the company’s industrial chain. The official online tour platform will be available on Yili’s global website. Soon, it will really be about experiencing everything while sitting on your own couch…

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