Dairy Market Report Q2 2022

Where to start? It is fair to say the last year has been the most volatile period of dairy pricing in living memory. We have seen dramatic changes to the market in the past such as the butter crisis in 2016. However nothing compares to the dramatic rise of dairy prices over the last year and it doesn’t look like the trend will be reversed any time soon. Buyers are scrambling around trying to secure stock and nobody is willing to commit to long term deals. The wise move in Q4 2021 was to buy stock for the short term in anticipation prices will come back once the spring milk flush starts again in Feb/March. Unfortunately all the usual logic is no longer relevant. Milk shortages in Europe seem set to follow a common trend throughout the year. Rising input costs for farmers have squeezed margins and a many milk suppliers have exited the market on the continent.

Let’s take a look at the situation in more detail:

The European Dairy Market
READ MORE
Prices at Record Levels
Prices at Record Levels
READ MORE
Sustainability and Climate Targets
Sustainability and Climate Targets
READ MORE
Tension at the Ukraine/Russia border
Tension at the Ukraine/Russia border
READ MORE
 

The outlook going forward doesn’t look like it will change for the better in the near future. The last year has again emphasized the importance of building relationships with suppliers to ensure stock is delivered in full and on time. The volatility in the market at the moment has created issues for many businesses who are struggling to secure stock. Thankfully Ingredient Solutions have been able to secure sufficient stock to keep our customers’ orders fulfilled as we have long term relationships with our suppliers. It has never been more challenging for supply chains with transport also a major issue to the global economy. Everyone has experienced challenging times over the last 18 months but now more than ever has taught us the key lesson of how important secure supply chains are. It is hard to predict what the market will look like in a years’ time but all we can do for now is fasten the seatbelt and ensure we get through the next 6 months with smooth transitions of supply. It seems prices will stay high for the foreseeable but this is out of our control. What we can control is our service to our customers, ensure we keep everyone updated on market movements and deliveries stay consistent so we have one less issue to worry about.

Your Sincerely,

Ian Galletly

Managing Director


CONTINUE READING


Browse Past Market Reports

More dairy research

swoosh

Ingredient Solutions on Social Media

swoosh

Tel: +353 29 76981 Fax: +353 29 76984

© Ingredient Solutions Ltd 2025 | All rights reserved
Ingredient Solutions
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.