We are officially at the halfway point of the year and H1 2023 has brought some relative calm after the countless storms we had to navigate over the last few years. Prices had started to drop at the back end of 2022 and this sharp drop continued well into Q1 2023. The record high milk prices in 2022 had offered a huge incentive to farmers across Europe to produce as much milk as physically possible to reap the financial rewards. The market started to settle a bit in the springtime but the drop in commodity prices also inevitably led to a sharp and sudden drop in milk prices. The high prices of 2022 incentivised high milk production levels but the drop of the milk price then exposed the high input cost every milk producer now had to face with inflation rampant throughout the global economy.
Cheese Prices Stabilizing
Mozzarella is the best indicator on how cheese prices are moving as it’s the only truly global cheese.
Political Unrest in the Netherlands
There have been major farmer protests since summer 2022 after the current Dutch PM Mark Rutte committed to halving overall nitrogen emissions by 2030
Farmers Protests in Ireland
In further protest news closer to home there were demonstrations in June from farmers outside the Kerry Group plant in Charleville about the recent cuts to the milk price.
Farm Labour Shortages
The rising costs of milk production have been further compounded by farm labour shortages and top European dairy producer Arla has warned of further price increases as a result.
Gruyere Cheese Exports Collapse
In another sign of the times we live in it was announced in June that production of the famous Swiss cheese Gruyere will be cut by 10% over the next year.
I hope this information helps.
I’d like to sign off by wishing you all a lovely summer and I’ll be back to share my views on Quarter 4 in good time,
Your Sincerely
Ian Galletly
Managing Director
Catherine’s role is Technical Assistant and she is one of the newer members of the Ingredient Solutions team. Catherine recently graduated in Food Science and Innovation at WIT and is motivated, positive and enjoys working in a team. Catherine says, “I always see the good in every challenge that approaches me as they can lead to opportunities to learn more.” She is looking forward to focusing on the areas that she can control and learning how to perfect them.
Ted is the Factory Manager, he is the man that keeps everything running smoothly, supporting production and technical operations. He ensures that all the machinery within the factory functions at maximum efficiency and is properly maintained.
Suma has worked for Ingredient Solutions for two years as Technical Manager – leading the technical team. Before working for Ingredient Solutions, Suma worked in Asia, the Middle East and Europe and has over twenty years experience in management and leadership in food and other industries.
Pina is our UK Sales Support Administrator and has worked for Ingredient Solutions since 2012. She works alongside Gary Davies and the sales team providing them with sales information and supporting the team especially when they are on the road. Pina works remotely for Ingredient Solutions from her base in Luton in the UK.
Marek is based near Lublin, that’s not a typo we don’t mean Dublin, he’s our man on the ground in Eastern Europe.
