Tridge summary
The article highlights a potential risk to the value of 'fodder' commodities due to an imbalance in the market, which could be exacerbated by the growth in cheese production and negative predictions for China's economic growth. A strategy for mitigating this risk is suggested through the transformation of fodder products into food products, with the demand for which being more positive. There has been a 15% increase in the value of food products over the previous season. The article also advocates for the deep processing of whey protein to produce concentrates, isolates, and lactose, which are in high demand, but these projects require substantial investment.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.
Original content
If this imbalance continues, the value of the "fodder" commodity is in the risk zone in the long term. And the situation may further worsen due to the growth of cheese production and negative forecasts for China's economic prospects. The way out is the transformation of the fodder product into a food product (with appropriate positioning and certification), whose demand prospects are more positive. If we compare the price component, then, in contrast to the stable cost of feed whey, food products this year are valued higher than last season (+15% in April-May against the same period in 2023). Of course, it is even better to focus immediately on the margin in the ...
Source: MilkUA
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