Global trends see lower prices but more consumption
Prices are trending low for globally traded dairy products, such as SMP, WMP, butter and cheese, according to Italian dairy consultancy CLAL, in its latest report. Skimmed milk powder was fetching EUR2,455 per ton in Oceania, while in the US it was EUR2,165 and in the EU, EUR2,163 per ton. Cheese also saw dips, with cheddar in Oceania down to EUR2,996 per ton and Edamer out of Germany at EUR3,075 per ton. That being said, consumption of these products is expected to increase again in 2012, particularly in China for WMP, Brazil for WMP and cheese, and India for butter and SMP. In the US, cheese and SMP continue to be increasingly consumed, while the EU is noted for consumption of cheese.
In Germany and Italy, farmgate prices have increased for March by 5.04% and 4.36%, which the consultancy notes,” Farmgate milk prices rank at higher levels in most countries. Downward pressure on dairy product prices will probably provide fewer returns.” That being said, both New Zealand and the US saw farmgate prices drop, by 3.27% and 2.71% respectively. Milk production continues to increase in teh US, Oceania and the EU-27, but the South American climate may affect production there.
Inputs are still trneding high, but are set at lower levels than a year ago, CLAL reports. Energy costs continue to increase and the main crude oil producing countries are the most important cheese and milk powder buyers, CLAL says. A rapid GDP rate means dairy products are travelling to China, Russia, Southeast Asia and Brazil. The EU is still seeing an uptick in exports, although this was lower than the world as a total: 6.17% in 2011.
SMP continues to be popular in developing countries, and the EU and the US have both ramped up production of the powder. Prices are weak, but improved over last year.
On the Italian cheese side of it, there was a slight increase in 2011, of 0.63% over the previous year, while Pecorina and Fiore Sardo exports pulledahead with a 8.3% increase. Overall, the exports grew by 4.32% in 2011.
