Buyers are back in the office after Gulfood and their activity is stirring the market.
With Christmas around the corner, much-awaited action is going to take place. Should the demand persist at its current level in the first quarter, we can anticipate a firm pricing scenario in the dairy market.
Hottest Products of the Week
Milk Powders
The quantities of SMP for the ONIL tender have been published and are set at 20000 MT. Moreover, there is still a big demand for FCMP.
Lactose is in demand, specifically when it comes to buyers from export destinations.
Whey Powders
There is still commotion on the market for WPC and WPI.
SWP and AWP are stable at the moment.
Cheese
Gouda and Edam producers are mostly sold out, while buyers are eager to secure additional products before Christmas, which drives the prices further up. There are quantities for Q1, but certainly with higher price tags.
There is an increased interest in Cagliata and Mozzarella.
Fats
Butter is actively being looked for. The bids for fresh butter chase the bids for fats relentlessly, but still, there is a significant gap.
Liquids
We are still on a downward slope for quantities of raw milk collection, but it seems like we are going to hit the bottom soon. One has to bear in mind the wet conditions that also influence the situation on the milk market.
SMC went up again, as did cream, which has been rising for a month now.
What else?
In 2024, the European Commission is set to earmark €186 million for supporting promotional initiatives aimed at sustainable and high-quality agri-food products, both within the EU and internationally.
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According to a survey conducted among prominent milk purchasers, the data suggests that as of October 2023, there were approximately 7,500 dairy producers in Britain. This reflects a year-on-year decrease of around 350 dairy producers, constituting a decline of 4.5%. A significant factor contributing to this decline has been the farmgate milk prices.
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In Spain, the largest global producer of olive oil, supermarkets are securing bottles of the essential cooking oil due to rising prices and a surge in theft. In certain supermarkets, one-liter bottles of extra-virgin olive oil are being sold for as high as 14.5 euros ($15.77).
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In an effort to control the highly pathogenic avian flu (HPAI) that resulted in the loss of 21 million birds in France, the country has initiated the vaccination of ducks. This measure, which incurred an estimated cost of €1.5 billion, has led the United States and Canada to implement trade restrictions on French poultry imports, effective from October 1, 2023.
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Brazil typically meets the majority of its dairy supply needs domestically, with imports accounting for only 1-4% of the demand, primarily sourced from Argentina or Uruguay.
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As a component of its strategy, Danone launched its initial Fortimel products in the Chinese market within the food for special medical purposes for adults (FSMP) category.
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Astral Foods, South Africa’s largest poultry producer (ARLJ.J), reported a full-year financial loss on Monday. The company attributed this downturn to the persistent electricity crisis and the nation’s most severe bird flu outbreak, incurring a total cost of 2 billion rand ($108.9 million).
