Undoubtedly, this is a time when it is important to keep a regular eye on changes in the dairy market. Although there are offers for practically all products, one can speak of a kind of slowdown. Apparently, waking up from hibernation is not easy for everyone, or something.
The latest data shows that liquid milk purchased by consumers is one of the main pillars of the Australian dairy industry. The astonishing thing is that someone must have actually verified this… Milk is important to the dairy industry? Impossible!
What else has been happening in the dairy market? Read this excellent newsletter and you will find out.
Continue reading to learn about this week’s market insights.
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Skimmed Milk Powder
The situation on the powder market remains largely stable. There are offers, especially for older products. Stocks are full and buyers often wait until the last minute to make a purchase as they receive offers several times a day. The low export prices are not always as favorable as they could be because of the high transport costs.
There was a decent volume of Butter traded last week. Considering all dairy products, Butter could be called a ‘happy product’ as people sought to meet their needs for the coming weeks with the lower prices of Butter offered in Poland and Ireland. At the same time, producers complain that these prices are below their production costs (Cream valorization). Although the farmer’s milk procurement price has fallen, expectations of further reduction are becoming stronger.
WPC 80 Instant
With the current reduced Whey Protein Concentrate prices, we see that buyers do not mind and accept the current price level, which translates well to the domestic retail market. While in recent years there was a race to see who would offer the cheaper whey, the U.S. or the EU, today the products are almost equal in price on their respective continents.
Last month’s situation has been erased by the availability of milk on the market. The producers have the best liquidity for the production of Cheese. Nevertheless, the regions of CEE do not have the same problems with a higher percentage of available milk on the market. They therefore keep sales at the upper end, where their local sales are accepted by buyers accustomed to the product of their origin.
The price of raw milk in the EU is changing
The exceptionally high supply on the market (which is no surprise to anyone who follows developments closely…) and the limited demand for dairy products in the world are cited as reasons for the decline in milk prices in the vast majority of EU countries. This is not a short-term trend – the situation continues for another month. For some time, producers have been using the surplus raw material to make cheese, butter and milk powder. Many look hopefully to the opening of the Chinese market after the coronavirus shutdown…
An unusual case of mad cow disease in Switzerland
Switzerland has reported a case of bovine spongiform encephalopathy (BSE) in the eastern region of Grisons. The typical form of the disease usually occurs in cattle as a result of ingestion of contaminated feed, whereas the atypical variant may occur spontaneously. Such cases are detected only sporadically, but may nevertheless lead to trade restrictions.
The EU wants to reduce the scope of livestock greenhouse gas limits?
European Union countries last week discussed the possibility of reducing the number of farms covered by proposed rules limiting pollution and greenhouse gas emissions from livestock. Under the current draft legislation, all cattle, swine and poultry farms with more than 150 animals would be covered by the limits. Many member states do not want to agree to this. All indications are that we will be watching this soap opera (methane opera?) for a long time to come.
Danone with a new investment in the United States
The company has announced plans to build a new production line for bottles in Jacksonville, Florida. The investment amounts to $65 million, and the goal, as you can easily imagine, is to further expand the business and strengthen the company’s position. 65 million dollars? That’s probably quite a few (full) bottles to sell to make it pay off.
Artificial intelligence will help transport calves in America
A pair of Canadian entrepreneurs are introducing a new technology. ‘Transport Genie’ is an electronic sensor that relies on artificial intelligence to monitor the microclimate of loaded livestock trailers. Measurements are taken during loading, during transport and in the storage areas of the packing house. Measures include temperature, humidity, carbon dioxide, ammonia, vibration and surface temperature. It looks like the calves will be traveling first class from now on.
A dairy demonstration center is being built in Idaho
The Idaho Center for Agriculture, Food and the Environment (‘CAFÉ’) will construct a state-of-the-art dairy facility the size and scope of a commercial dairy. The facility will focus on sustainable dairy development, and researchers will also address crop biodiversity in the region, natural resource optimization, and additional revenue streams in dairy production. The dairy is expected to begin operations before the end of 2024. In short, from now on, it will be CAFÉ with milk?
Asia & Oceania
Liquid milk purchased by consumers is vital to the Australian dairy market
The liquid consumer milk market remains crucial to the Australian dairy sector, according to the latest data. It accounts for 30 percent of milk production and generates more than $4 billion in revenue annually. Liquid milk important to the dairy sector? Who would have expected…
Synlait Milk changes forecasts
New Zealand-based Synlait Milk has again lowered its base milk price forecast for the 2022/2023 season. The main reasons cited for the decision are subdued activity in the global dairy market and a slower recovery in demand in China after the reopening. The dairy producer lowered the forecast base milk price from NZ$9.00 per kgMS to NZ$8.50 per kilogram of milk solids (kgMS).
Alltech establishes partnership to promote dairy farming in Thailand
Alltech has teamed up with the Dairy Farming Promotion Organization of Thailand to strengthen the country’s dairy sector. The goal of the newly formed collaboration is to help farmers develop the right knowledge and adopt the proper technologies, services and management practices for sustainable dairy and beef cattle production.