191th Edition of Foodcom DAIRY Newsletter

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Foodcom Experts
04.10.2023
191th Edition of Foodcom DAIRY Newsletter
Summary
Table of contents

Hello, Partners

Hold on to your cowhides! The dairy market is getting hotter and hotter – and it’s only moved up since our last edition. And guess what’s more? We’re under an El Niño watch! Upcoming GDT might only confirm everyone’s expectations. Stay frosty, milk warriors — we’re about to dive into the frosty abyss of dairy dynamics! Winter is coming.

Hottest Products of the Week

Whey Proteins

In the wild west of dairy, it’s a showdown between the heavyweights: WPC and WPI. These bad boys are the kings of the market, coveted like gold in the California rush. If your product doesn’t flex its WPC and WPI muscles, you might as well bring a water pistol to a gunfight. Saddle up, partners — it’s a protein rodeo, and only the brave survive.

Cream

Hold onto your cowhorns, because the Cream scene has a tighter grip than a rodeo cowboy’s handle! In all three regions, Cream is scarcer than shade in the desert. In the Central region, the situation is downright dramatic — cream is a heavyweight and is causing butter production to sweat. In this creamy mess, the survival of the richest dairy dreams is at stake. So if your product isn’t riding the cream wave, you run the risk of drowning in the milky fog.

Butter

Butter is on the rise, soaring in the middle of the country while tangoing in the west. In the East, where supplies are so rare, it’s the VIPs behind the scenes who keep the butter factories on their toes. In the Central region, it’s a poker game with plenty to go around, but buyers should be willing to pay more. In the West, butter supplies are tighter than a lasso, and demand is raging like a prairie storm.

Gouda

In a growth trend, Cheese is in the spotlight. Despite some CME blues, cheese demand is strong in the West, steady in the Midwest and taking a breather in the Northeast. Cheese inventories are well stocked and ready for the next cheese chapter.

What else?

Europe & Africa

The Netherlands

Dutch farmer dedicated to improving dairy in Canada. Dutch farmer Gert Schrijver, now in Alberta, Canada, manages a thriving dairy farm and is actively involved in the boards of Alberta Milk and Milk Farmers of Canada. Alongside his brother Henk, they have established two successful dairy farms, earning accolades such as Master Breed of the Year in 2019 and Master Breeder in 2022. Despite Gert’s frequent board commitments, his farm, Mars Field Holstein, prioritizes conformation performance, health traits, and sustainability, contributing to the strength of the Canadian dairy industry. The farm covers 780 hectares, cultivating barley, rapeseed, and alfalfa, with a dairy herd of 400 Holstein cows producing an average of 41,000 kg over their lifetime.

Ireland

Irish dairy farmers angered by imposed nitrates derogation cuts. Dairy farmers in the Republic of Ireland are expressing frustration and concern as the EU imposes cuts to the country’s nitrogen derogation levels, reducing them from 250kg/ha to 220kg/ha due to Ireland’s failure to improve water quality. This move is expected to impact around 3,000 farmers, forcing them to either decrease cattle numbers or secure additional land. The Irish government’s unsuccessful negotiations with the European Commission have led to accusations from dairy farmers, blaming the government for compromising the multi-billion euro dairy industry. The decision is viewed as a significant setback, with some groups accusing the government of “selling out family dairy farms.”

The Americas

US

California dairies turn to cheese puffs to meet consumer protein demand. California Dairies, Inc. has introduced In Good Hands, a direct-to-consumer product featuring high-protein cheese puffs made from milk protein isolate. With 12 grams of protein per serving and flavors like nacho cheese and white cheddar, the product aligns with the growing demand for nutritious, on-the-go snacks. Despite the current online availability, plans are in progress to expand the presence of In Good Hands in physical retail stores.

US

Butter, cheese demand supporting milk prices. U.S. milk production is expected to remain stagnant due to lower prices and high feed costs, leading to a likely decline in cow numbers, according to University of Wisconsin-Madison professor emeritus Bob Cropp. Despite recent strength in milk prices driven by higher cheese prices, the dairy industry is facing challenges, including reduced demand in Asia and increased competition from Europe and New Zealand. The USDA has adjusted its milk production forecasts for 2023 and 2024, with an increase in the all-milk price forecast to $20.40/cwt for 2023 and $20.30/cwt for 2024, reflecting tight margins for dairy farmers.

Asia & Oceania

Australia

Stanhope cheese could top 170 million pizzas a year. Consumers and restaurants worldwide, including Australia, consume 25,000 metric tonnes of Fonterra’s Perfect Italiano Mozzarella annually, produced in Stanhope. This quantity can make 170 million pizzas each year, reflecting the cheese’s global popularity. Fonterra’s Stanhope operations, with a century-long history, ensure rigorous quality checks to maintain the high standards of their mozzarella, which is renowned for both its distinctive stretch and taste.

Australia

Increased dairy intake reduces falls and fractures among older people, study finds. Increased dairy intake among older individuals in Ireland could potentially lead to a significant reduction in the number of fractures suffered by the elderly, according to an Irish consultant geriatrician. Citing an Australian study involving 7,000 people in care homes, the research found that a higher dairy intake was associated with a 46% reduced risk of hip fractures, a 33% reduction in all fractures, and an 11% decrease in falls. The consultant highlighted the potential economic savings and improved quality of life for older individuals in Ireland, emphasizing the cost-effectiveness of the intervention at just 70 cents per resident per day.

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