Is there too much milk? Market report 23-6-23
Protein concentrates still falling, skimmed milk powder and milk fat falling, cheese and spot milk price stable.
A quiet week, last purchases were made before the holidays. The next few weeks it will be difficult to find buyers who are not on holiday and still need to stock up for the summer.
It is interesting to see how the added value of the protein concentrates is constantly melting, one could almost think it is a Swiss glacier in summer. As with glaciers, the problem probably lies deeper, there is too much milk!
And in Switzerland?
Swiss cheese exports and production continue to decline. As of the end of April, 3% less cheese was produced and 8% less exported. the difference is in stock.
To the question: Is there too much milk?
Two observations suggest that it has more than enough milk:
1. the constant price erosion of milk protein concentrates
2. the prices of milk powder remain low
Our forecast for Q4:
Uncertainty for Q4 has increased, the value added in milk powder is very low and it could be that suddenly more cheese will be produced this summer and we will see falling prices in autumn. We will see first signals in July, if prices do not hold over the summer, they will go down until summer 2024.
Next week I will be at the International Cheese Award in Stafford and will report in the next newsletter how my cheeses performed.
We are present at the following fairs:
- International Cheese Award, Stafford GB, 30.6; 1.7. 2023 (as participant)
- 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
