Is the war affecting the dairy market? Dairy Market-Report from 20.10.23
Skimmed milk powder, milk fat rising, cheese slightly rising, protein concentrates stable, spot milk price falling.
In currencies and stock markets the effects of the war in the Middle East have arrived, but not yet in the dairy market.
Fresh cream is still in demand, frozen butter has plenty. Milk powder is rising slightly. In cheese, almost no new contracts are being concluded now; those who have to buy in the short term are paying higher prices. Protein concentrates seem to be stabilising.
Feeding costs are stabilising.
And in Switzerland?
A new war and the Swiss franc become even stronger. Actually, Switzerland should raise prices now, but cheese exports in the have collapsed. In August, Gruyere relief sales were held at rock-bottom prices and exports recovered, but the warehouses are still full, and the campaigns are continuing.
To the question: Is the war affecting the milk market?
The war in the Middle East, like the war in Europe, will have a negative impact on all aspects of life. When the Ukraine war started, inflation went up and demand went down. The new war is further away and affects us less, so the impact will be weaker, and it will take longer to reach us.
Our forecast for Q4:
The dairy market will feel the impact of the war in the Middle East. Demand will decrease, exacerbated by the global recession. As a result, prices will fall and feeding costs will rise.
We will be present at the following fairs:
- Marca Bologna 16, 17, January 2023
- Salon du Fromage, Paris 25- 27-2-2024, with our own stand
- Cibus Parma 7 - 10 May 2024
- PLMA, Amsterdam 28- 29 May 2024
- Sial, Paris 19- 23 October 2024, with own stand
Kind regards, Affineur Walo
