W48: Weekly Dairy Update
Milk
Despite excellent milk production in 2021, totalling 21.88 million MT, up 13.17 thousand MT from the previous year, production from June when the season began to October this year has been lax. Collections so far have totalled 7.38 million MT the lowest in 5 years. In 2021, that collected in the same period was 7.65 million MT compared to 7.93 million MT in 2020. The 7.38 million MT collected from the start of the season till date is 331 thousand MT lower than the 7.7 million MT 5- year average and 176 thousand MT below the 2021 total. (Continue Reading)
The selling price of skimmed milk powder amounted to USD 3.75/kg (PLN 16.80) and was lower by 3% than a week earlier and by 8% than a month ago. Behind Whole milk powder was USD 5.22/kg (PLN 23.41), which is 0.5% more than in the previous week, but 2% less than in the previous month. Compared to last year's quotations, SMP was more expensive by 30%, and PMP by 50.5%. On the Chicago Stock Exchange, the price of skimmed milk powder amounted to USD 3,214/t (PLN 14.57/kg) and was 1% higher than a week earlier, but 4% lower than a month ago. Behind Whole milk powder, reportedly as of a week ago, received USD 5,402/t, which is 0.2% more than a month earlier. Compared to last year's quotations, SMP was 7% cheaper, and PMP 31% more expensive.
Spain: The Dairy Industry Demands Fair Prices
The general director of the Federation has pointed out that the dairy industry is suffering especially from the rise in the price of gas and electricity, since it is an intensive sector in energy consumption. In addition, the rise in the cost of raw materials for farmers is passing through to the price of milk at source, which has already increased by 45% so far this year, and which is expected to end the year at a significantly higher value. However, the retail price of liquid milk has registered an increase of 25%. Luis Calabozo wanted to highlight that, despite the difficulty of the context and the continued increase in the price of milk at source, the processing industry maintains its remuneration commitment to farmers. "Since the Food Chain Law came into force, there is no record of a single complaint by farmers," he stated. Calabozo recalled that more than 99% of the national dairy industry is made up of small and medium-sized companies, which now see their survival threatened. In the same way, he recalled that the dairy industry is a strategic sector for the survival and revitalization of rural Spain, since it contributes to establishing the population in less dense territories, due to its contribution in the form of quality employment, being the only industrial activity in many areas of rural Spain. For this reason, he has demanded a fair remuneration for all the links in the food chain, which will prevent the closure of companies, the destruction of employment and the disappearance of cattle, sheep and goat milk farms.
Ukraine: Milk Production Decreased by Almost 13% In 10 Months
Against the backdrop of a reduction in the number of livestock and the productivity of cows in the front-line zones and territories with active hostilities, milk production in Ukraine decreased by 12.4% in 10 months to 6.575 million tons. That is, the industry did not receive 929.6 thousand tons of milk. According to preliminary data of the State Statistics Service of Ukraine, as of November 1, there are 2 million 584.3 thousand head of cattle in Ukraine, which is 14% less than on the corresponding date in 2021, including 927.7 thousand cattle (-6.9%) in industrial farms, and 1656.6 thousand (-17.5%) in households. The total number of cows decreased to 1.4 million, which is 13.9% less than in 2021. According to the calculations of the DSSU, the industrial herd of cows decreased by 8.4% and totaled 385.1 thousand heads, and the number of cows in the domestic sector fell by 12.4% and amounted to 1015.8 thousand heads. Although, according to AVM estimates, the losses of the industrial herd of cows are higher and have already crossed the mark of 50,000 cows since the beginning of the Russian aggression. Therefore, the volume of milk production in Ukraine has significantly decreased. However, due to the effective operation of dairy farms in safer regions and the relocation of livestock from the affected areas, it was possible to minimise the losses of industrial milk. Thus, during the analysed period, 2.185 million tons of milk were produced, which is 120,000 tons (5.2%) less than last year, the DSSU informs. Households were more sensitive and did not have the opportunity for such "flexibility", so production in this segment decreased by 15.6% to 4.389 million tons.
Ukraine: In 2022, 2.7 Million Tons of Milk Will Be Processed
Currently, milk production in Ukraine, according to expert assessment, reaches about 6 million tons. This was stated by the chairman of the board of directors of the Union of Dairy Enterprises, Vadym Chagarovskyi. " Households produce no more than 3-3.5 million tons of milk. In this segment, the number of cattle is decreasing the fastest," he noted. In the industrial sector, despite the war, there was no drop in livestock numbers and milk production, as predicted back in the spring. " This year, we expect that 2.7 million tons of milk will be processed," Vadim Chagarovsky said.
Turkey: The Danger of Milk Price Waiting for the Consumer
The milk producer, who has been overwhelmed by the ever-increasing costs in the last period, found the solution by sending his female animals to slaughter, as in the past years. While a large number of female animals have been sent to slaughter in Turkey recently, there are problems in milk supply as a result. There will be no milk under USD 1.61 (30 liras). Mehmet Varol, the President of Köykoop Denizli Regional Union, announced that the shortage in supply will be reflected on the shelves after the female animals are sent to slaughter, and that the milk crisis is at the door. Speaking to Selami Aydın from Sözcü Newspaper, Varol said, “The price of milk increased by 14% in 10 days. It has not been reflected on the market shelves yet, but there will be no milk under USD 1.61 (30 liras) until a month.”
Butter
Dairy plants monitored under the Integrated Agricultural Market Information System of the Ministry of Agriculture and Rural Development on November 14-20, sold butter in blocks of USD 7.18/kg (PLN 32.16), 1% more expensive than the week before, but cheaper by 3% than a month ago. Packaged butter was sold at USD 7.02/kg (PLN 31.47), which is 3% cheaper than in the previous week and 9% cheaper than the month before. The price of butter in blocks was higher than a year ago by 30%, and packaged butter by 16%. On the Chicago Stock Exchange on November 18, the price of butter was at USD 6,195/t , 3% lower than a week ago and 12% lower than a month earlier. Compared to last year's prices, butter was 37% more expensive.
Turkey: The Cost of Butter Produced Is USD 9.12 (170 Liras)
Stating that Turkey had to import livestock, Varol said, “The cost of butter produced in Turkey is USD 9.12 (170 liras). For now, imported butter is on the shelves. This is not a sustainable situation. In order to solve the milk problem, importation of whole milk powder will be required. In this environment where the exchange rate is high, it will also be costly. There has been a 14% price increase in milk in the last 10 days. This has not yet been reflected or partially reflected on the shelves. Especially after January, there will be a serious price increase in milk and dairy products. Currently, there is no milk under USD 1.23 (23 liras) on the shelves. We will not be able to find milk under USD 1.61 (30 liras) in a month.”
Ukraine: This Year, There Is a Positive Foreign Trade Balance in the Dairy Industry
For 10 months, Ukrainian dairy producers increased their export rates for all commodity positions, Crimean sour-milk products and dairy products. Vdvіchі grown up obsyagi export of milk and non-thickened tops, may have the second time butter and milk fat. Zrіs also exported sirіv, + 23% in the same period of the last year. At the same time, the obligations to exports from a penny virus from the second time exceeded the obligations to imports. At the same time, the volume of imports decreased significantly. Oils and milk fats for 10 months were imported 9 times less than for 10 months of the past year, and more for the second time. Six times, the import of milk and thickened tops has been shortened. Fast delivery of imports for all commodity positions.
Cheese
Cheddar cheese price for the week increased by 1.5% to USD 4,922/t. The recorded price level was 8.5% higher than a month ago and 20% higher than a year earlier.
Ukraine: Soft, Fatty Cheeses Have Risen in Price by 13.6% Since the Beginning of the Year
In October 2022, the average consumer price for soft, fatty cheeses increased by 2.5%, as compared to September, to USD 4.09/kg (UAH 151.76) against USD 3.99/kg (UAH 148.12). This is evidenced by the data of the State Statistics Service. Since the beginning of this year, the price of soft, fatty cheeses has risen by 13.6% from USD 3.60/kg (UAH 133.6) in January.
Indonesia: In W48 Indonesian Importers Began Planning for 2023 Dairy Imports
During W48, importers in Indonesia have begun planning for dairy imports in 2023, and in mid-December 2022 their quota will be issued by the government. Dairy cheese consumption from Australia and Europe has decreased due to exchange rates, and the Indonesian rupiah has weakened about 8-9% up to IDR 15,700 for USD 1 in the last two quarters, hence putting more pressure on importers. Although they fear a recession in the upcoming 2023, importers plan to maintain their status as dairy product importers and suppliers.
