MarketWatch
Unpredictable price dynamics in the global dairy market, but things are surely interesting
The dairy market is still grappling with the new priorities in milk valorization. Nothing seems to be able to stop the upward momentum in milk proteins, despite the apparent recent turnaround in WPC-80 prices. However, business models in dairy are logically built on creating the best value from all components given the inherent processing limitations and customer prioritization. Suppliers may reconsider their output profile whereas end-users may be rethinking product reformulation in order to balance changing consumer priorities with raw material cost dynamics. Supply and demand in some dairy market categories are not ready for the paradigm shift that is shaking up the milk protein market. Trade may temporarily solve shortage situations, but it is clear that the many investments that are underway to restore the balance are desperately needed. Until that time price dynamics will remain very unpredictable, but it sure makes the dairy market an interesting place to be part of these days.