What did the high dairy commodity prices do to trade patterns in 2022?

In the past couple of years we lost track of the “normal” when it comes to dairy consumption and dairy commodity prices.

In 2020 and 2021 we witnessed lockdowns around the world turning familiar dairy consumption patterns around and causing massive logistic disruptions. Subsequently, in 2022 we saw the war in the Ukraine adding additional turbulence to dairy markets by pushing milk production costs to high levels and thereby reducing export supply. The resulting appreciation of dairy commodity prices may have caused a lot of deviation from traditional buying patterns in the key import markets of the world. “Demand fall out” in price sensitive markets, “delaying purchases” during the peak of dairy commodity prices in H2 of 2022 can be considered two of the normal buyside reactions one would expect during the turbulence of 2022.

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