In 2022, the production of skimmed milk powder and whole milk powder may decrease due to the projected shortage of raw materials - Mikhail Sobolev

With reference to industry experts, he predicts that the growth of milk production will be lower than expected, which will lead to a global shortage of dairy products in the world and an increase in prices for raw material. Producers will direct milk to produce products with high added value, which will lead to a reduction in the production of key exchange-traded products, Mikhail Sobolev believes.

At the same time, low stocks of skimmed milk powder are already observed in exporting countries, so we can expect an increase in prices for these products.

In the whole milk powder segment, the market is more balanced, lower supply and lower demand are expected here, Mikhail Sobolev noted.

In the butter segment, the situation is also more or less stable. Thus, in the USA, butter stocks are quite high, which makes it possible for local producers to reduce prices. However, the price dynamics are constrained by a more balanced situation on the butter market in the EU and New Zealand. ‘In addition, New Zealand's tariff-free access to the Chinese market will support the forward price,’ Mikhail Sobolev concluded.

General Partner of the conference - Kieselmann Rus  

Partner of the conference – Mustang Nutrition Technology