Historical market notice: This article was published in November 2023 and reflects dairy-market conditions, policy developments and industry commentary available at that time.
The summer months are now a distant memory as we have gone just past Halloween and the clocks are turned back. It has been a relatively stable year for dairy pricing if we compare to the manic last few years. There are various political headwinds however at the moment related to the dairy industry and in the longer term it does look like there will be a significant struggle to maintain adequate levels of production. At the time of publication, dairy production and agricultural emissions were continuing to feature in government policy discussions internationally. COP28 was also due to take place in Dubai in November 2023, with climate policy and emissions among the issues expected to be discussed.
Current Market Situation
The market has been relatively quiet over Q3 and a lot of buyers seem to have covered their requirements at keen pricing when the market was at a low ebb…
Irish Nitrogen Derogation Issue
There is concern within the Irish dairy industry as the EU announced a cut on Ireland’s derogation on application of nitrogen per hectare from 250kg to 220kg
Middle East Conflict: Oil/Commodity Prices
The world hopes we see an end to the conflict soon and let the humanitarian disaster stop. In an economic sense the conflict creates a great deal of uncertainty with the potential to spread to surrounding countries.
This will be the final market report of the year and we can reflect on a much less volatile year than the ones before. They were less volatile in pricing terms as we didn’t have to deal with the constant dramatic price increases which seemed to be the norm in the post covid/post Ukraine war world we lived in. This is welcome news for buyers of dairy as prices had reached an unsustainable level for many. However, the worry is now that farmers may come under serious pressure with the fall in milk prices as they still have to deal with inflationary pressures. Hopefully those concerns don’t come to harsh fruition but there are already signs that the continued uncertainty in the dairy sector is affecting long term confidence.
At Ingredient Solutions we are continuing to perform well in a challenging market and we are looking forward to 2024. We are well prepared to deal with any market volatility if it does arrive and our customers know they can always rely on us to be there whenever they need us. We wish everyone a strong finish to the year. It’s a bit early yet for festive wishes so for the meantime we hope everyone enjoys a prosperous build up and if you need anything do not hesitate to reach out to us.
The market and policy commentary above reflects information available in November 2023 and should not be interpreted as current environmental policy guidance or as an environmental claim about Ingredient Solutions or its products.
Your Sincerely
Ian Galletly
Managing Director
