Inside: Milk & Food
Dairy auction is a bit disappointing
A healthy buying appetite from China and mixed reports about the milk supply in the European Union and New Zealand. Those are sufficient ingredients for a price increase. Yet the Global Dairy Trade (GDT) is not writing convincingly green figures and that is a bit disappointing.
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The European dairy sector is talking about protectionism at the Eucolait this week. This is a growing problem in Europe. At the same time, it is an excellent opportunity to take stock of dairy pricing. It is now clear that the market is not in bad shape. For example, with a view to the period after the summer, exports are already being slowed down, cheese and butter in the US are selling themselves out of the market again and New Zealand is having to deal with winter.
3,3
procent
Hardly any New Zealand offerings
The latter means that there is hardly any supply from New Zealand. However, the increase in butter prices in the last GDT remains limited. Plus 3,3 percent to an average price of $5.631 per tonne. The highest prices are recorded in July ($6.320) and August ($5.915). The period when New Zealanders are still in hibernation. However, this is followed by the holidays, but this could hardly move prices. The price of AMF even fell by 1,2 percent to $6.569. The biggest declines are in October and November. The peak of New Zealand's milk supply.
This trend continues in whole milk powder (WMP). On average, the price fell 2,9 percent to reach $3.143. The losses are again mainly seen in the months of October and November. However, the price has managed to hold above a healthy level of $3.000 per tonne. A level that is seen as cost-covering.
-2,9
procent
Plus for skimmed milk powder
Against the red there is a plus of 7,9 percent for skimmed milk powder (SMP). Led by Arla, followed by Fonterra New Zealand, the price rises to $2.156. Here, November, with a plus of 9 percent, just did not record the largest increase.
Danger for EU?
The GDT shows a volatile picture. Where October recorded green numbers last time, these are now mostly red. Will more milk be supplied or is there fear of a drop in demand in China? For the EU it is a development to keep an eye on. Mainly because of the SMP stock. With the holidays approaching, there is no immediate threat to the pricing of the most important products: cheese, butter and fresh produce.
1 dollar = 0,889 euros
