Hello Partners!
We’re observing interesting changes that could impact your business decisions in the coming months. We’ve noticed that most purchasers have already completed their buying plans for this year, leading to a significant reduction in product inquiries. This shift in market dynamics has resulted in an increased availability of products, which in turn has led to slightly lower prices. What implications might this have for your business?
This week’s key event is the Food Ingredients Europe (FIE) Fair in Frankfurt. It’s an exceptional opportunity to get acquainted with the latest trends and innovations in the food industry. Our team will also be present, ready to establish new contacts and discuss future opportunities! Let us know so that we can schedule a meeting!
Hottest Products of the Week
Milk Powders
This week, prices for Skim Milk Powder (SMP), Buttermilk Powder (BMP), and Full Cream Milk Powder (FCMP) have slightly declined from last week. The demand for SMP is stabilizing after a busy period last month, influenced by lower milk production this season. This has resulted in decreased SMP production and inventory, prompting manufacturers to seek higher prices.
The seasonal lull in milk production means FCMP is being produced mainly for existing orders, leading to reduced uncommitted stock. However, demand remains stable.
Whey Powders
In the whey market, Whey Protein Concentrate (WPC) and Whey Protein Isolate (WPI) remain the standout products, with prices continuing to climb. This contrasts with the European dry whey market, which is currently experiencing unchanged prices, reflecting stable market conditions.
The demand for whey derivatives has strengthened, leading to more liquid whey being diverted into these markets. Consequently, this shift has resulted in steady to slightly lower production of dry whey. Despite these changes, the demand for dry whey remains stable, and inventories are well-balanced with current demand.
This ongoing trend in WPC and WPI, along with the stability in the dry whey market, is a key point to consider for those involved in the dairy industry.
Cheese
In the cheese sector, we’re observing stable conditions, with a slight upward trend in prices. This stability, coupled with the price increase, is noteworthy in the current market landscape. However, it’s important to note that the availability of cheese products remains limited. This factor could be influencing the slight rise in prices and is a critical aspect for buyers and sellers in the cheese market to consider.
Fats
The butter market is experiencing a stabilization in prices, despite strong recent demand for packaged butter. High cream prices and limited supplies are curbing butter production, leading to rapidly shrinking butter stocks. Manufacturers are currently relying on existing inventories to meet demand, with many buyers utilizing contracted amounts and postponing additional purchases in anticipation of potentially lower prices after the holiday season.
Bulk butter and butteroil prices have firmed, influenced by the tight cream supply. The European butter and butteroil market remains firm, with well-supported prices, reflecting a cautious approach by buyers and suppliers alike.
Liquids
As we approach the annual low point in weekly milk volumes, market participants are keenly assessing the potential impact of future milk production on Dairy Markets.
Over the past few months, milk intakes have been tight, which has, in turn, supported commodity dairy prices. However, there’s a growing uncertainty about how supply and demand dynamics will evolve for dairy commodities as milk output is expected to seasonally increase in the upcoming weeks.
What else?
Algerian authorities now require milk powders to have Halal certification from the Grande Mosque of Paris. This new regulation could impact the supply chain and market strategies for milk powder exports to Algeria.
The Court of Justice of the European Union (CJEU) has rejected an appeal from Emmentaler Switzerland to register ‘Emmentaler’ as a trademark within the EU. The court ruled ‘Emmentaler’ as a generic term for a type of cheese, rather than an indication of origin. While ‘Emmentaler’ remains generic, three Emmental-type cheeses have geographic indications within the EU.
Some Eastern European countries are seeing an increase in milk output. Concurrently, the European Commission’s 2023 enlargement package could further integrate candidate countries, including Ukraine and Moldova, into the EU, potentially impacting the dairy market dynamics.
Australia reports a growth in milk production and increased average daily deliveries in August, alongside investment concerns from a major dairy processor. In contrast, New Zealand faced a decrease in daily milk deliveries due to extreme weather and challenging market conditions.
Brazilian industry contacts highlight strong crop yields, bolstering dairy output and reducing the need for dairy imports. Despite global market fluctuations, prices for dairy commodities, particularly whole milk powder and cheese, remain firm in Brazil.
Ottawa-The panel under the North American Free Trade Agreement dismissed the U.S. complaint, stating Canada isn’t improperly restricting its dairy market access, as per an official report. The U.S. had claimed Canada violated the 2020 US-Mexico-Canada agreement by not opening its market to foreign producers, but the panel found Canada’s actions reasonable.
Dairy Irish farmers are “losing patience” with milk prices being offered by the country’s processors, according to the Irish Creamery Milk Suppliers’ Association (ICMSA).
The ICMSA claimed that a global market improvement for dairy produce is not being reflected in the prices currently on offer for Irish milk suppliers.
