176th Edition of Foodcom DAIRY Newsletter
The price of Cream is rising in general. There’s nothing better than starting an article with a strong opening, right? The increase in the price of Cream affects the overall situation of the dairy sector. Butter and Anhydrous Milk Fat, among others, have seen price increases over the past week. It’s not hard to guess how rising prices will affect demand.
Although potential buyers are taking their time with their purchases, there is a light at the end of the tunnel. In fact, buyers around the world are beginning to accept higher product prices, leading some to hope that the current downward trend in demand will soon be reversed.
In addition to the typical description of the situation of individual products recently, in this edition of the newsletter you will find: a decrease in the number of dairy farmers in the United Kingdom, changes in prices on store shelves in Romania, the development of new technologies used in the dairy industry, the construction of new factories, fluctuations in imports and exports, and much, much more. Do you want to be up-to-date on everything important in the dairy sector? Then be sure to read on!
Continue reading to learn about this week’s market insights.
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Last week, Polish Butter was no longer competitive with Western producers, especially Irish, due to the higher price of fat and currency rating. The prices of the product from these two producing countries increased and converged. Customers, seeing the drastic price increase, did not buy in volume to confirm the upward trend, the continuity of the increase. Given the general instability of Butter, it is not certain that consumers will accept a 10% higher price, increasing from week to week.
Skimmed Milk Powder
As we highlighted in the last issue of the newsletter, upward trends continue unabated. Cheap raw material from the West is no longer as visible in the market, and we see quotes across Europe in the green. Regardless of the recent higher prices of Skimmed Milk Powder being concluded on the world tenders, we believe this is the perfect place and time for the creameries to be able to supply the world in the milk powder sector.
Those who read our dairy newsletter 4–5 weeks ago will have the impression that the market is “in the same place,” with good availability of products and not the strongest demand from around the world. Nevertheless, procurement still buys when it needs to secure the goods for production and not to replenish their stocks.
Full Cream Milk Powder
Full Cream Milk Powder has followed the trend of Skimmed Milk Powder. The product has seen a price increase on dairy platforms in the last 2 weeks and has seen some demand on the European continent. Availability is not particularly high, as Europe has not seen higher spot demand in the last 6 months that would make the product appear to be in demand.
Cream strengthened across Europe last week. For other liquids, including Skimmed Milk Concentrate, the situation was similar in European countries, their prices also increased and they strengthened their position.