IFCN Experts Predict Dairy Price Shifts
Source: The DairyNews
Experts from the analytical platform IFCN, specializing in the analysis of dairy farming and processing across over 140 countries worldwide, anticipate a surge in the average global raw milk price to around 45 euros per 100 kg.
This projection emerged during the IFCN Global Dairy Tech Mapping 2.0 event, conducted online on January 17, 2024. IFCN's experts meticulously scrutinized the factors contributing to the decline in worldwide milk prices in 2023 following a remarkable upswing in 2022. Moreover, they outlined diverse scenarios foreseeing the global trajectory of the dairy industry and milk prices for the year 2024.
According to insights shared by Philipp Goetz, Head of Sales and Business Development at IFCN, the exorbitant and unconventional milk price spikes in 2022 resulted in a surplus-driven market deceleration in 2023. Average prices witnessed a 25.5% dip compared to the previous year, registering a mere 0.4% increase compared to the 2019-2021 price range. Goetz attributes the sharp decline in milk prices last year to an oversupply of dairy products in key exporting nations. The mismatch between demand and supply in exporting regions during 2023, influenced by consumer restraint due to high inflation and GDP growth deceleration, exacerbated the situation.
Even active demand for milk in certain importing countries failed to absorb the excess production prevalent in the market.
According to insights shared by Philipp Goetz, Head of Sales and Business Development at IFCN, the exorbitant and unconventional milk price spikes in 2022 resulted in a surplus-driven market deceleration in 2023. Average prices witnessed a 25.5% dip compared to the previous year, registering a mere 0.4% increase compared to the 2019-2021 price range. Goetz attributes the sharp decline in milk prices last year to an oversupply of dairy products in key exporting nations. The mismatch between demand and supply in exporting regions during 2023, influenced by consumer restraint due to high inflation and GDP growth deceleration, exacerbated the situation.
Even active demand for milk in certain importing countries failed to absorb the excess production prevalent in the market.
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