Hello everyone, I hope you are enjoying a relatively stress free build up to Christmas! The festive season is indeed upon us and as we look back over the year we can be correct in saying it has been another drama filled period in the dairy industry. After the record high pricing in 2017, the general feeling was 2018 would see a gradual reduction in pricing. However, seasoned experts were proved wrong yet again as we saw another dramatic increase in the Spring on butter especially. Thankfully we seem to have got over the worst 2018 threw at us but who knows how 2019 will play out?
As the end of the year descends upon us it is hard to believe how quickly it has all passed by yet again! We understand that 2018 was another challenging year for all of our customers who have had to deal with more turbulence on their pricing. We live in uncertain times both in the dairy sector and politically so nobody can be sure what 2019 will bring. However, we are encouraged by the developments of recent months and we will keep our customers closely updated as we see more activity. Again, we would like to thank everyone for keeping faith with us over the course of the year and we hope you are satisfied with the effort we put in.
We wish everyone a very happy Christmas and a prosperous New Year. Bring on 2019!
Greetings to you all we hope you have been enjoying the fantastic sunshine over the course of this record breaking summer! It is safe to assume most of us have been pleasantly surprised by the heatwave we have encountered and long may it continue. However to keep up the recent trend there is always scepticism when it comes to volatility in the dairy sector and the extreme lack of rain is putting pressure on farmers across the continent. This has come on the back of another huge jump in price on especially butter and mozzarella over the last few months. There are several predictions being shared by experts on what lies ahead but if we have learned anything from the past 2 years it is that predictions can look very silly indeed!
An uncertain market but with ever increasing demand
To conclude it is clear we are working in a very uncertain market and trends become even harder to predict in the light of ever increasing demand for dairy. However it must be said that it is positive that demand for natural dairy is growing and we hope this continues. It is clear though that work needs to be done to address the supply issues that are ongoing as the sharp sudden increases in price are tough for everyone to deal with. I hope all of our customers appreciate we do our very best at Ingredient Solutions to provide you with the best deal possible in a challenging environment. We hope you feel we do our best to provide you with as much information as possible to show the challenges we face. As ever we always try to think in a positive manner and we feel there has to be a point where prices reach a much more sensible level. As always we will keep you posted on any developments and we wish you all a pleasant summer.
A Happy New Year from all at Ingredient Solutions!
Here’s hoping 2018 is a more stable year of trading for farmers, processors, suppliers & customers in the dairy industry alike. The market is still just settling after the Christmas break, with many traders only back in recent weeks but everyone is cautiously hopeful for the year ahead.
Winter is upon us again and usually this means potential price volatility with the end of the milk production season. However there is general optimism that we have reached a pricing peak for dairy and we are soon set to see significant easing over the next few months. This is well needed as it has been another very tough year with prices driven to near record levels by an unprecedented shortage of butter. There is also less demand for European product due to a strong dollar which has increased Asian exports for the US so this should reduce the extreme pressure on EU stocks.
In our last market update we reported of prices easing and a period of relative stability in the dairy industry. Wishful thinking! All the usual logic that says the start of milk production should bring lower prices has gone swiftly out of the window due to an unprecedented shortage of butter. This is due to a huge demand from consumers which has led to a severe shortage of butterfat. We were hopeful that 2017 would see the period of relative stability being maintained after the huge price volatility over 2H 2016.However this has proved to be an illusion as butter prices have reached record levels and other dairy products are fast on its heels.