- A new wave of COVID cases is impacting dairy demand in China.
- The country’s milk production is still climbing, though, even though prices have weakened.
- Prices are strengthening in most other geographies.
COVID Surge Suppresses Dairy Consumption in Northern China
A resurgence in COVID is impacting dairy consumption in Northern China. This could be slightly offset by online sales.
Milk production is still climbing, even though prices have dropped slightly. Imports remain viable, so production could dip, with sizeable duty-free shipments on the cards for January.
Prices are also climbing:
- For skim milk powder, prices are climbing with consumption set to jump in the New Year.
- For whole milk powder, prices are up as some large factories are unwilling to increase production with large imports on the cards.
- And for unsalted butter and anhydrous milkfat, prices have jumped on the back of insufficient supply from major brands and minimal arrivals from Europe.
World Market Dairy Prices
Butter prices are strengthening in the run-up to the Northern Hemisphere’s peak season.
Skim milk powder supply is plentiful, which makes the high prices unsustainable.
All other dairy products in New Zealand and the US have continued to rise, apart from skim milk powder.
Europe’s butter and skim milk powder prices have been volatile this week, much higher than anywhere else.
The European market has temporarily lost its price advantage in all products except for cheese.
Other Insights That May Be of Interest…
Disease Hits China’s Dairy Market
Dairy Suppliers in Asia Benefit from Tight Asian Supply
Explainers That May Be of Interest…
