177th Edition of Foodcom DAIRY Newsletter
We have mentioned something about stabilization in several issues of the newsletter. Well, there are many signs that those times are over. Not the best news for those who expected further significant price declines and held off buying because of that: Prices have started to rise significantly, and the prediction is that this trend will continue. The question is how long they will be able to stay out of the market, and whether the situation – from their perspective – will not be even more difficult than it is now when they return.
The forecasted nice, warm weather in Europe will certainly boost consumption of ice cream and cold drinks, including milk-based ones. There will be more inquiries about the raw materials used in their production (The question is whether the manufacturers of ice cream and similar delicacies have not managed to prepare in advance, after all, summer is every year…).
It seems that, thanks to the current weather conditions, we are experiencing or have just passed the peak of milk production in Europe in terms of volume. At the same time, the fat content of milk is changing, which affects the rising prices of products, especially liquids.
Either way, prices change from day to day or even more frequently. Luckily, you have us, not only with the best deals, but also with unique insights from the heart of the market. Read on and you’ll learn everything important!
Continue reading to learn about this week’s market insights.
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The huge growth trend of Cream in the market last week was reflected in an overwhelmingly high price of quoted Butter. The most competitive Butter state (namely Poland) raised the price of the product from €4.30 to €4.75 within the last two weeks 🚀. The market for Butter will be settled for the present and next week due to the Eucolait Dairy Risk Management Education Seminar in Warsaw, Poland, which most producers will attend.
Skimmed Milk Powder
Following the liquids, the Skimmed Milk Powder has also broken out of the matrix and has begun to value itself more. As we reported last week: the global dairy market has increased, the trend in Europe has also found approval for higher prices in the market. In recent weeks, sufficient volumes have been traded, which only confirms the trend of the market.
Even though Butter and powders were in the spotlight last week, Cheese also played its role on the market. However, the show was stolen by the former two. Compared to the powders and the Butter, we did not see a particularly drastic movement. A sign of an extra activity has been witnessed from the quoted manufacturers.
Full Cream Milk Powder
The market has also shifted its perspective of the product of Full Cream Milk Powder, which was also reflected in an increase in prices and demand. As for the Polish market, CEE did not feel this drastic development, keeping the price at the upper end of European producers. The most significant difference that came into play was the Irish market, where the product was at least 200 euros per ton above the price of the last weeks. Welcome FCMP, no one missed you.
This is another week when both Cream and Skimmed Milk Concentrate have risen across Europe. All indications are that this trend will continue.