Hello, Partners
The Anuga fairs in Cologne are in the spotlight, and guess what? Our partners steal the show, turn heads and spark trading revolutions! It’s not just about showcasing products, it’s a battleground of flavors, a melting pot of creativity. Get ready for a whirlwind of dairy magic and stay tuned for the latest, boldest and most memorable experiences coming straight from Anuga!
Hottest Products of the Week
SMP
In the turbulent market, Skimmed Milk Powder is proving to be an unyielding protagonist. In recent weeks, producers have boldly pushed prices higher, while traders struggle to hold on to previous levels. This suggests that prices have bottomed out and are now on a precarious climb. The burning question is: How long will this riveting market drama hold our attention? Only time will reveal the unpredictable twists and turns that the SMP has in store.
FCMP
In market dynamics where much is at stake, Full Cream Milk Powder takes center stage, shrouded in an air of scarcity. Manufacturers are cleverly playing their cards, claiming to be sold out by the end of the year to give the appearance of exclusivity. In the meantime, manufacturers are exerting their influence and manipulating demand through a calculated reduction in supply — a strategic dance reflected in the wave of global inquiries we have witnessed. The FCMP saga unfolds with a plot thickened by shortage tactics, leaving us guessing whether this orchestrated drama will lead to a grand finale or an encore with intrigue.
WPC80
In the exciting history of the market, Whey Protein Concentrate 80 is the coveted treasure whose demand is increasing and whose supply is shrinking day by day. The response from customers, initially put off by our prices, is now belatedly returning as the material becomes scarcer. A tense undertone runs through the story as Q4-2023 prices steadily rise, leaving us wondering — will this trend continue until the mysterious dawn of 2024? The stage is set and the unfolding drama of WPC 80 keeps us all on the edge of speculation.
Butter
In the ever-changing world of commodities, butter is at the center of an action that defies conventional expectations. While the price of cream takes a breather, the shortage of raw materials refuses to let butter prices rise. It’s a paradoxical story in which the usual rhythm of price dynamics takes an unexpected pause, leaving us to wonder what forces are at play. The continuing uncertainty in the butter saga keeps us guessing: Will the script continue to defy the norms, or is a new chapter of market equilibrium on the horizon?
What else?
Europe & Africa
Poland
Between January and July 2023, Poland experienced a notable increase in the export of agri-food products, reaching a value of 29.7 billion euros, a 13% rise compared to the same period in 2022. Import figures also rose by 7%, totaling 18.9 billion euros. This positive trade balance surge, at 10.8 billion euros, marked a 25% increase from the previous year. The majority of agro-food exports continued to be directed to the European Union, with deliveries to EU-27 countries accounting for 73% (21.8 billion euros) of total export revenues, experiencing an 11% growth. Furthermore, Poland exported agro-food products worth 8.0 billion euros to non-EU countries during the same period, reflecting a 20% increase compared to last year.
France
The Gaec Mairet family farm, having expanded from 24 to 92 dairy cows, invested €300,000 in two Lely milking robots during the summer of 2023 to accommodate the growing herd. The decision to choose Lely was influenced by the positive experience with a slurry scraper robot from the same brand. This investment is expected to increase production, absorb fixed costs, and raise the gross operating surplus by €56,000, contributing to higher remuneration for associates.
The Americas
US
Wisconsin cows achieved top honors, including the prestigious Supreme Champion award, at the World Dairy Expo. Notable winners included Oakfield Solom Footloose-ET, named the 2022 Supreme Champion, and Homeridge T Annette, winning Supreme Champion of the Junior Show. MS Ransom-Rail Beth-Red stood out as Grand Champion Female and Senior Champion Female of the International Red and White Show. In the Guernsey category, Valley Gem Altas Malt-ET continued her three-year winning streak as Grand Champion Female. Additionally, Wisconsin heifers excelled in various categories, with notable wins for Grand-View Tuxedo Devyn-ET, Random Luck Total Perfection, and Prairie Gem Midnight Storm-ETV. Overall, Wisconsin’s success showcased the state’s dominance in the global dairy industry.
Canada
Canada’s Minister of Agriculture, Lawrence MacAulay, has launched the Dairy Innovation and Investment Fund, committing up to $333 million over the next decade. The initiative aims to enhance the competitiveness of the Canadian dairy sector, focusing on addressing the surplus of solids non-fat and modernizing processing capacity. This move aligns with the government’s commitment to support supply-managed sectors under the Canada-United States-Mexico Agreement.
Asia & Oceania
Kazachstan
The chairman of Kazakhstan’s agricultural committee, Talgat Baimurinov, raised concerns that nearly 70% of dairy products imported from Russia may have questionable quality. He urged the authorities to prioritize food security and reconsider the trade policy that allows extensive dairy imports. Baimurinov suggested focusing on supporting local manufacturers, proposing that subsidizing the construction of 10-15 milk farms could resolve the issue within 2-3 years and even lead to milk exports. The country currently faces a gap between consumption (2.16 million tonnes) and domestic production (1.7 million tonnes), largely filled by imports from Russia. Concerns were also expressed about potential negative impacts on the industry if Russian milk enters the market through illegal channels.
Russia
In Yakutia’s Verkhoyansk district, the Arctic’s first summer cowshed for 100 dairy cattle has been completed, equipped with mechanized milking tools. Owned by the “Algys” cooperative, the project, funded by the Ministry of Agriculture and private investments, is the first major facility in Yakutia’s Arctic zone. Future plans include the construction of a 120-place standard cowshed and a modern dairy plant in Verkhoyansk next year.
