THE GLOBAL WINDOW OF TURKISH FOOD AND AGRICULTURE The Global Window of Turkish Food and Agriculture Sector
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In Europe, where the market changes seasonally, the availability of milk cream boosts in November and December as milk production increases and fresh demand decreases. However, demand for cheese in the European Union is expected to put a strain on butter supply…
According to dairy supplier Maxum Foods, which considers futures and actual transactions, expectations for the market to fall before December are very weak. This is not expected to change even if milk supply increases, demand for milk fat decreases and the impact of lower cost New Zealand butter imports is felt.
According to the latest US Department of Agriculture’s (USDA) World Markets and Trade in Dairy Products report, butter production in the EU is forecast to fall by more than 1 percent in 2024, driven by limited milk supply and demand for cheese as a substitute for milk cream and skimmed milk powder.
Milk production has increased in other regions and a better production period in New Zealand has kept skimmed milk powder prices in check despite limited supplies in the EU and US, the company said.
USDA forecasts that raw milk production in China will soar in 2024 due to an increase in the number of dairy cows, while imports of milk, skimmed milk powder and milk powder will decrease due to soared domestic milk consumption. In the US, rising farm margins will support higher milk production. Cheese prices will ease as cheddar cheese supply improves and butter prices will remain under pressure as cream production improves.
The company suggested that cheese exports will be important for the US cheese balance sheet in the first half of 2025 and will benefit in this scenario, with no significant change in the EU market. The company also noted that competition in cheese markets will be fierce, with New Zealand also looking to boost cheese production, targeting Australia and other regional markets to help reduce reliance on skimmed milk powder and fats in its product range.
