There has been coverage in the press over the past few weeks about dairy ingredients prices dipping and the knock-on impact on milk prices. StraightTalk spoke with Charles Morrish, managing director of our Ingredients division to get the facts of the situation.
Charles commented, “While it is true that prices for products such as whey powder and skimmed milk powder have come back a bit in recent weeks, this needs be put in context. Firstly, prices reached all time highs over the past six months and it is to be expected that the high prices had the effect of burning off some demand and therefore resulting in an eventual dip. Secondly, with regard to milk prices, the farmgate price has never moved to a level that reflected what the market was paying for dairy ingredients, so it would therefore be wrong to make any direct correlation between ingredients prices coming back and an impact on the farmgate price,” he said.
“Our demands forecasts are still strong driven by global growth prospects. The common view in the industry is that the structural drivers that drove the market upwards this year are not going to go away.”
