The second day of the Dairy Industry Newsletter conference started as day one ended – optimism on prices. However, this time the message was boosted with the news from the European Commission speaker that there is little possibility of skim milk powder release from intervention given current market predictions on volumes.

Commission representative Sophie Helaine said: “I don’t see much room coming on the market for volumes in stock, and I don’t think the Commission expects to sell much this year and definitely not during the peak milk period.”

She did qualify her message that much depends on prices and what directions prices move, but her thoughts and predictions suggest there is going to be enough on the market already without releasing more stocks from intervention.

Butter

As we have reported for the last number of weeks the really good news of 2017 is the high butter prices and the Commission speaker followed this up suggesting there have been very high exports of cheese into Japan and Korea from the EU. Butter exports are actually down 15% for the first quarter of 2017 but the US has increased the volume of butter imported from the EU to satisfy an almost insatiable appetite for butter at the moment.

Speakers from Arla and Muller also spoke at the conference. Between them they process over 50% of the milk in the UK. Both suggested they are investing and consolidating their relative positions in the UK dairy industry following a period of change.

Arla’s Tomas Pietrangeli said that the processor wants to change the way the company communicates about milk. He said the industry needs to tap into the trends driven by young women and start a new conversation around health and wellbeing.

Fresh milk

Muller’s Sean Whitfield talked about continuing to drive the fresh milk market by home deliveries in glass bottles delivered before 7am in the morning to all residences. They have developed a new app that allows customers make it easier to order.

He also explained that Muller are investing big money in flavoured milk through their brand Frijj. “This product was probably almost in intensive care but we have changed formulations, brought out new zero sugar and new flavours and need to move it into non-chilled environments so that it can be stored where no refrigeration is possible,” he said.

Irish company Aurivo recently invested in a company producing similar products called ‘For Goodness Shakes’.

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