Many German dairies have been in a position to adapt to the upcoming gasoline scarcity and have been in a position to scale back power consumption via varied measures or make it extra versatile to cowl power necessities by utilizing different power sources (together with heating oil), in response to the State Affiliation of the Dairy Trade in Decrease Saxony (LVN).
Nonetheless, the costs for power and for a lot of uncooked supplies and provides are nonetheless properly above the extent earlier than the Ukraine battle, underlines the LVN. Disrupted provide chains and the swap to various sources of provide in the end proceed to result in larger procurement prices.
For a number of weeks it has been obvious that the sharp enhance in producer costs for milk and the gentle climate circumstances have stimulated milk manufacturing in Germany. Round 1.6% extra milk was delivered in October 2022 than in the identical month final yr.
Over the months of January to October 2022, the amount of milk delivered continues to be 0.2% under the identical interval within the earlier yr. Along with the rise in amount, milk parts (fats and protein) have additionally elevated.
Whereas good demand is reported from the German retail sector because of the public holidays, demand has weakened, significantly in exports and exports to 3rd nations. In gastronomy, too, the demand after the summer time growth has dropped to the traditional degree.
This example has in the meantime additionally led to a cooling of the markets for milk and milk merchandise. The costs for milk powder, butter and semi-hard cheese have additionally declined.
With the present blended scenario, it may be anticipated that producer costs will steadily weaken within the coming months, notes the LVN. Additionally it is to be anticipated that the clear unfold within the costs for supply milk will slender once more, it additional says.
Because of the persistently excessive value elements and the declining dairy cow populations in lots of EU nations, average developments may be anticipated total. As well as, the pattern in the direction of larger husbandry requirements and the more and more restrictive framework circumstances brought on by environmental and local weather necessities forestall purely quantitative progress in quantity, claims the LVN.
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