Drought and rising milk prices
Weeks of drought and high temperatures caused decrease in milk supply and purchase; cooperatives are looking for raw materials, hence higher milk prices – explained Pisarek. He added that “it is temporary, because it is not caused by a reduction in production or a decrease in the number of cows”.
He noted that in the recent period many cooperatives have increased milk purchase pricesnow it is about PLN 2 per liter. Of course, the prices of raw materials or energy translate into production costs for processing plants, and these in turn affect prices for consumers – added the president of the KRSM.
International Markets and the Rise in Butter Prices
In Pisarek’s opinion, prices of dairy products in our country they probably won’t grow much. The director of the Polish Chamber of Milk (PIM), Agnieszka Maliszewska, has a different opinion and points out increase in global prices of these productsand these influence the level of domestic prices.
“Products are getting more expensive all over the world (…) there is a very strong correlation between Polish prices and world prices,” she said. She emphasized that prices were greatly influenced by the drought that occurred throughout Europe, which, among other things, caused there is less fat in milkand its price is higher.
Maliszewska noticed that in recent times butter prices on world markets have increased. Poland is both an exporter and importer of butter.
Reasons for the increase in butter prices
According to Credit Bank analysts, butter prices on the global market have already approached record levels from the end of 2022. “The significant increase in butter prices relative to other dairy product prices is due to its reduced supply in export marketsespecially from the side New Zealandwhich is the world’s largest exporter of butter (approx. 48 percent share in world export). We are also dealing with lower butter exports from the EU, where production of butter and skimmed milk powder was limited in recent quarters by the higher profitability of cheese production” – we read in the AGROmapa bulletin.
As the head of PIM said, it should also be noted that food is getting more expensive in many countries, because the EU imposes many restrictions on production, companies incur costs and ultimately consumers pay for it, so we have to reckon with the fact that we will pay more and more for the products.
The Impact of Price Wars on the Butter Market
According to Maliszewska, the price relations for butter, among others, have been disturbed by the recent “war” of Lidl and Biedronkain which retail chains compete in promoting food products, including butter, by offering them at reduced prices.
According to the portal “For trade” average price of butter in September it was at the level of PLN 7.10 per 200 g cube. In the supermarkets surveyed by the portal, butter cost from PLN 5.98 to PLN 8.99. In July, the average price of butter was PLN 6.7/200 g (PLN 3.49-PLN 6.99). Of course, the price of butter depends on where you buy it, in which region of the country, in which store and where it comes from.
Poland’s position in milk production
According to KOWR, in 2022 Poland was the third largest milk producer in the EU, after Germany and France, with domestic milk production at a level of over 15 million tonnes. In the whole of 2023, 12.7 billion liters of milk were purchased in the country, 2 percent more than in 2022. In the period January-July 2024, total milk purchase amounted to 7.8 billion liters and was 4.2 percent higher year-on-year. (PAP)
author: Anna Wysoczańska
