- European dairy prices rocketed last week.
- Omicron has prompted production shutdowns, causing disruption across the region.
- These prices could mean dairy buyers turn to Oceania and the Americas in 2022.
European Dairy Prices Rocket as COVID Situation Worsens
- After two weeks of volatility, Europe’s butter and skim milk powder prices have surged.
- This is because Omicron has prompted production shutdowns and logistical delays.
- Europe’s dairy prices are much higher than other suppliers’, but we think global prices will remain high in the medium term.
- With this, we should see more buyers turn to Oceania and the Americas for cheaper supply in 2022.
- New Zealand should be a key supplier, with production and prices starting to improve alongside the weather.
Other Insights That May Be of Interest…
Sugar & Omicron: The End of the Trend?
Will the Omicron Variant Slow Dairy’s Rally?
