Recession in the dairy market? Market report 14-7-23
All prices falling, except spot milk price which is stable.
Milk volumes are decreasing, demand in Southern Europe is increasing and prices are decreasing. We are still in a buyer's market and now we see no signs that this will change soon.
And in Switzerland?
Cheese exports in May were slightly better than last year, but we have no signs that this is a turnaround. It is much more the case that some producers emptied their warehouses in May.
To the question: Recession in the dairy market?
The mood is not positive now, demand is weak, and prices are falling. The restrictive monetary policy of the central banks is reinforcing this negative trend and I can well imagine that one or the other dairy will soon have problems.
That the weakest companies disappear during a recession is deliberate. Unfortunately, this does not work in the dairy market, usually two sick cooperatives are merged into one big one and instead of two small sick ones you then have one big sick one. Why do I suddenly have to think of banks?
Our forecast for Q4:
We do not want to add to the negative sentiment and stand by our statement that uncertainty is very high.
We are present at the following trade fairs:
- Anuga, Cologne 7 - 11 October 2023 (as co-exhibitor with Dicke Food).
- Marca Bologna 16, 17, January 2023
- Salon du Fromage, Paris 25- 27-2-2024^
- Cibus Parma 7 - 10 May 2024
- PLMA, Amsterdam 28- 29 May 2024
- Sial, Paris 19- 23 October 2024
Kind regards, Affineur Walo
