Rabobank: dairy prices still low22 Dec 2014
International dairy markets continue to suffer from low prices according to Rabobank’s latest Dairy Quarterly report, though the rate of decline in the price of dairy commodities has slowed compared to that seen in Q3 2014. Exceptional milk production growth in export regions in the last nine months has outstripped weak local consumption, boosting supply […]
International dairy markets continue to suffer from low prices according to Rabobank’s latest Dairy Quarterly report, though the rate of decline in the price of dairy commodities has slowed compared to that seen in Q3 2014. Exceptional milk production growth in export regions in the last nine months has outstripped weak local consumption, boosting supply in the international market and forcing prices to fall. However, low prices have succeeded in clearing huge volumes, with trade growth up 15% year on year. While Rabobank believes that there are signs of price stabilisation, climbing off the market floor may take some time.
“Low prices were required to help clear a market still dealing with exceptionally strong supply growth, a rising US dollar, a weak economic environment and reduced buying from China and Russia” states Rabobank analyst Tim Hunt.
China has continued to buy far less from the international market than this time last year – with incoming shipments down almost 50% in October year on year as the country continues to work its way through excess inventory. Meanwhile, Russia’s enforced ban on imports from key suppliers has meant that globally prices have had to fall by 30-50% from their peak, to encourage buying from second-and-third- tier importers, such as South-East Asia, the Middle East and North Africa, to clear the market.
While these markets have taken advantage of discount products, helping to avoid the accumulation of supply-side stocks, the challenge of avoiding stock accumulation will likely become greater in coming months. Much depends on how quickly the world’s dairy suppliers respond to recent price cuts.
Low prices, compounded in the EU by the risk of superlevy payments, should see producers in many export regions hit the brakes in H1 2015. Together with some improvement in consumption in the US, and to a lesser extent the EU, this will reduce the amount available on the international market in 1H 2015. However, this is unlikely to prove sufficient to generate any meaningful price recovery as demand looks set to continue at weak levels due to Chinese purchases tracking below the prior year and a continuing Russian trade ban.
Rabobank expects the market to gradually tighten in 2H 2015. However, it may take a weak southern hemisphere production peak in 2015 to finally tip the balance for a price recovery to gain momentum.
Parmesan partnership to put ‘blockchain ready’ digital chip on all cheese wheels
29 Jun 2022
A new line of food-safe and secure digital labels on each Parmigiano Reggiano cheese wheel will deliver previously unseen levels of traceability, product control, and quality assurance, says the Consorzio del Parmigiano Reggiano (CFPR).Read more
Dairy butter carbon footprint is 3.5 times larger than plant-based spreads, says Upfield
25 Apr 2022
Plant-based margarine manufacturer Upfield says its spreads have a 70% smaller carbon footprint, require half the amount of water and use two-thirds less land across the product cycle when compared to conventional butter, according to a life cycle...Read more
China leads the global boom for probiotics
30 Mar 2022
Probiotics are experiencing a boom in global demand - particularly in China - as consumers look for functional ingredients in food and drink products that can improve their health.Read more
Butter is Better: Keto is driving resurgence as a premium product
11 Feb 2022
After years of being shunned as an ingredient, fat is back thanks in large part to the popularity of the keto diet. The market for keto products is growing steadily with the global value of this category forecast to reach $15.6 billion by 2027, accordi...Read more
Oats growing in popularity, winning awards and consumer favour
10 Feb 2022
Oats have transformed from a breakfast ingredient to an increasingly common plant-based option, appearing in a multitude of applications.Read more
Chobani debuts plant-based coffee creamer
21 Jan 2022
After two years of producing dairy- and oat-based coffee creamers, Chobani is branching into plant-based coffee pairing options with the debut of Chobani Plant-Based Coffee Creamers. These creamers come in four flavors: Caramel Macchiato, Chocolate Haz...Read more
Animal-free dairy company raises $120M for commercialization
18 Jan 2022
Israeli animal-free dairy company Remilk raised $120 million in a Series B funding round led by Hanaco Ventures with participation from a number of other investors, including Impossible Foods backer CPT Capital, plant-based protein company Just, Yofix,...Read more
Chobani Sales surge as it moves closer to IPO
26 Nov 2021
Greek yogurt company Chobani saw its sales hit $1.2 billion as of Sept. 25 this year. That is only $200 million short of what the company recorded for all of 2020, when its sales rose 5.2% to $1.4 billion last year, according to a filing with the Secur...Read more
Cell-cultured dairy company maker TurtleTree closes $30M in Series A
8 Nov 2021
Singapore’s TurtleTree successfully closed a $30 million Series A funding round led by Verso Capital. This investment is one of the largest rounds to date in Asia’s cell-based food sector and brings TurtleTree’s total investment figure to $40 million.Read more
EU approves protein ingredient from Eat Just
25 Oct 2021
Eat Just, the company behind the mung bean-based Just Egg, received approval from the European Food Safety Authority (EFSA) stating that its novel mung bean protein used in its egg substitute is safe for consumption. It is the first novel legume protei...Read more
Are you a supplier?
Here's what we can do for you
- Generate quality leads for your business
- Stay visible for 365 days of the year
- Receive product inquiries and respond to meeting requests directly
- Improve company online presence through Search Engine Optimisation