Dairy Market: Why is there increasing pressure on prices? Market analysis from 2/2/2024
Protein concentrates stable, spot milk, milk fat, cheese, and milk powder declining.
The price decline is accelerating. Especially in Northern Europe, there seems to be an excess of milk.
And what about Switzerland?
In Switzerland, sales problems are mounting, exacerbated by financial issues faced by various manufacturers and the still strong Swiss Franc. Perhaps interventions by the central bank would be appropriate.
Regarding the question: Why is there increasing pressure on prices?
An oversupply from the North, as last year, meets weak demand; the prices erode, and customers order only the bare minimum, since the goods might be cheaper tomorrow. It appears the mistakes of last year are being repeated. "Fools and the intelligent differ in that fools always make the same mistakes, and the intelligent always make new ones." (Kurt Tucholsky)
Our forecast for Q2:
The political leaders have angered the farmers with, in my eyes, unnecessary cuts in subsidies, and for weeks farmers in Germany, France, Italy, and most recently in Switzerland have been protesting. This, even before the milk prices have started to slip, will intensify the protests, and the politicians will have to respond. The question is only: How much do the prices have to fall before the mood completely turns?
Finally, the latest story on Brexit: The English government has warned the public that due to new EU customs regulations, there may be delivery delays and price increases starting February 1st. The fact is that the English authorities did not consider it necessary to conclude an equivalence agreement, and therefore from 1.2 on, they require an original veterinary certificate for each delivery.
"Democracy is a device that allows people to freely decide who is to blame for everything." (Unknown)
We will be present at the following trade fairs:
- Salon du Fromage, Paris, 25-27 February 2024, with our own stand
- Cibus Parma, 7-10 May 2024
- PLMA, Amsterdam, 28 & 29 May 2024
- Summer Fancy Food, New York, 23-24 June 2024, with our partner World's Best Cheese
- International Cheese Award, 27 June 2024
- Sial, Paris, 19-23 October 2024, with our own stand
- Marca Bologna, 15-16 January 2025
- Winter Fancy Food Show, Las Vegas, 19-21 January 2024, with our partner World's Best Cheese
- Sirha Lyon, 23-27 January 2024
Best regards,
Affineur Walo
