Total stocks amount to 2.9% of YTD July milk production.
As such this should not be too problematic- depending on in which products the stocks are captured – but given the fundamentals in action, we would believe stocks will continue to increase in the next months.
* Exports fell by 6.6%
– As the EU is the most expense origin in key commodities, exports are unlikely to change to a more positive trend.
* Imports increased 16%
* Milk production declined -0.65% or -561 million kgs but exports declined by much more.
High domestic commodity prices made it more attractive to import for elsewhere and likewise, export destinations have no problem to find cheaper product in other regions.
Meanwhile, July has been the first month of increased milk production
Looking at inflation in staple dairy product, it is clear that especially dairy sees a much higher inflation rate thatn he general category ‘food’.
A lot will depend on how governments will eventually try to compensate consumers and businesses for the higher energy and food costs they are faced with.
Several governments are busy making plans but whatever the outcomes will be, the bill has to be picked up by someone eventually.