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Markets for almost all dairy products are steadily climbing. The situation should not change anytime soon, especially with FiE and Christmas on the horizon. The question is, will this pace remain or even pick up soon?
Let’s check what else is happening!
Hottest Products of the Week
Milk Powders
SMP is rather stable. In Germany, one can still find the product at a good price, but it’s hard to say that the product is in abundance. In other parts of Europe, some additional quantities came up, so the situation is a bit easier and the quotations are more predictable.
Nevertheless, most buyers are already stocked for Q4, and shopping for Q1 is in the works right now.
Lactose is firming up.
Whey Powders
WPC and WPI are on a steady upward trend. The availability of proteins is limited, and most producers are sold out until the end of the year.
Cheeses
The demand is big. The stocks, on the other hand, are really low. Prices for Gouda are even at 4.20 EUR/kg levels and it seems like this is not the ceiling yet. Mozzarella and Cagliata follow the trend.
Liquids
The situation in liquids is stable. Milk, cream and concentrates are comfortable at higher levels. As usual, the season causes lower milk intake, which then pushes the buyers to look for spot transactions on the market to fulfill the production needs. In many countries, the intake is even a few percent smaller, which turns the usual producers with surplus to the position of a buyer. This drives the prices further up.
Fats
As mentioned, cream is rather pricey now, and it’s only going up. This results in higher butter prices. Moreover, we see the increased demand for fats across Europe, which only contributes to the surge in price.
What else?
Europe and Middle East
The Suez Canal Authority (SCA) announced that fees for sailing in the Suez Canal are expected to rise by +15% for container vessels, chemical, crude, and product tankers, as well as gas carriers from January 2024. Roro and dry bulk vessels are going to be charged +5% extra.
FiE is going to take place in a few weeks in Frankfurt. Let us know if you plan to attend. Schedules are busy, but we are always welcome to talk!
Asia
In New Zealand prices are rising for a third consecutive month thanks to the more convenient currency rate and recovering global demand.
Koreans are looking for alternative suppliers in countries such as Poland as the local milk products are more and more expensive.
Americas
Sales of coffee at grocery stores in the United States, fell to below pre-pandemic levels in the first three quarters of 2023.
Fonterra and Nestlé have confirmed that they have finalized the sale of joint venture interests in Dairy Partners Americas (DPA) in Brazil. The buyer is the French dairy giant Lactalis Groupe.
