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Anhydrous Milk Fat Price Trend and Forecast
Get the latest insights on price movement and trend analysis of Anhydrous Milk Fat in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).
Anhydrous Milk Fat Price Trend for the Second Half of 2023
Anhydrous milk fat has a unique composition, which primarily consists of saturated fatty acids. This distinct feature is well exploited in the food industry to enhance the texture, flavor, and consistency of food products. In addition to this, its stable shelf life and ease of storage also make it a preferred choice of manufacturers.
The above-stated factors supported the rise in the prices of anhydrous milk fat during the third and fourth quarters of 2023. The prices saw a consistent rise as the anhydrous milk fat market witnessed the most significant jump among several dairy products.
The hike in prices came from rising global food inflation and consecutive inclination in dairy product demand. Additionally, the disruption of supply chains due to the blockage of the Red Sea route and drought in Panama Canal resulted in quick depletion in the inventories; however, the consumer interest in this sector kept on rising, and thus, the traders had a window of inclining the prices of anhydrous milk fat during the end two quarters of 2023.
According to Procurement Resource, the price of Anhydrous Milk Fat is expected to rise further as the global demand is increasing at a quicker pace than the production rate, increasing the gap between supply and procurement.
Anhydrous Milk Fat Price Trend for the First Half of 2023
The first two quarters of 2023 were unfavorable for the hike in the prices of anhydrous milk fat. The prices of anhydrous milk fat, even when the price of many other foods continued to rise at double-digit rates, have dropped significantly. Rising food prices have replaced falling energy prices as the primary cause of inflation for consumers in the European region.
Its decline was due to decreased energy and cattle feed prices, as well as lower consumption, which resulted in a surplus of milk output starting from the initial months of the first quarter of 2023. More downward pressure on wholesale prices, which have been declining globally since last summer, is anticipated eventually as demand declines. These decreased wholesale prices, along with declining energy and material expenses, kept the price trend of anhydrous milk fat in the negative zone.
According to Procurement Resource, the price trend of Anhydrous Milk Fat is expected to show a mixed trend. The demand sector for anhydrous milk fat seems weak, and along with the fall in the prices, the trend of anhydrous milk fat is estimated to remain uncertain.
Anhydrous Milk Fat Price Trend for the Second Half of 2022
H2 2022 witnessed very mixed price trend for anhydrous milk fat. Despite being the biggest producer in the world, India’s dairy imports are on the rise. The milk and related product prices in the Indian market remained anchored. H2 2022 closed with somewhat stagnant price patterns.
Europe faced the worst economic crisis in 2022. The Russia-Ukraine war impacted the economy and purchasing powers of individuals. Energy prices and the cost of living skyrocketed. Anhydrous milk fat remained on an upward trajectory. Q3 continued to witness a steep rise in Anhydrous milk fat prices whereas trend improved a little in Q4 as supply chains normalized, but still, the prices remained high comparatively.
With high rising inflation and declining milk production rate, the anhydrous milk fat price trend in North America remained high. The year-on-year milk production in the USA has been on a decline, so lesser supplies, high inflation, and sustained demand kept the price trend for anhydrous milk fat afloat. As the year-end approached, improved connectivity called for some low-rising peaks in the prices of anhydrous milk fat.
According to Procurement Resource, the anhydrous milk fat is going to show a mixed price trend, considering the rising consumption and equally stagnant production. Hence, the prices are expected to remain high swinging.
Anhydrous Milk Fat Price Trend For the First Half of 2022
The price of anhydrous milk fat remained strong during the first quarter in the Asia-pacific region. In January, the prices averaged 6668 USD/MT and reached the highest levels in March, averaging 7111 USD/MT owing to the soaring commodities prices due to the Russia- Ukraine conflict. The trade bottlenecks, supply-side constraints, and thinning inventories supported the higher prices. However, the prices began to stabilize, registering a slight decline. The cost of anhydrous milk fat went from 6802 USD/MT in May to 5913 USD/MT in June 2022. This decline resulted from the market’s demand destruction amid abnormal inflation.
The Russian invasion of Ukraine created huge volatility in the European market with strong reverberations across the milk sector. Farmgate milk prices went from 45.96 Euro/100kg in April to 48.52 Euro/100kg in June 2022. These inflated prices of food and feed impacted the price trend for anhydrous milk fat resulting in higher prices. The prices of anhydrous milk fat went from 5800 Euro/MT in January to 6981 Euro/MT in June 2022.
The US dairy and allied sectors struggled to maintain a constant supply due to surging feed costs, trade bottlenecks and labour shortages. The butter and farmgate milk prices averaged 6008 USD/MT and 27.30 USD/CWT respectively in June. These high feedstock prices strengthened the prices of anhydrous milk fat in the US domestic market.
Procurement Resource provides latest prices of Anhydrous Milk Fat. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.
Anhydrous Milk Fat is composed of pure milk fat. A product must contain at least 99.8 % milk fat and be made from fresh cream or butter in order to be called AMF, that is, Anhydrous Milk Fat. A fatty product, AMF is obtained exclusively from milk and/or milk products by means of processes that allow total removal of water as well as non-fat solids. No additive should be added in its production, that is, for neutralisation of free fatty acids and other processes.
|Anhydrous Milk Fat
|Recombined milk or dairy products and fractionated milkfats, Blends and spreads, Confectionery and baked goods, Culinary preparations, Processed cheese and cheese milk extension, Ready-to-drink beverages, Ice creams and chocolates
|Fonterra Co-operative Group, Dairy Farmers of America Inc, Hilmar Cheese Company, Inc, Lactalis Group, FrieslandCampina, Westland Milk Products, Synlait Ltd.
|Asia Pacific: China, India, Indonesia, Pakistan, Bangladesh, Japan, Philippines, Vietnam, Iran, Thailand, South Korea, Iraq, Saudi Arabia, Malaysia, Nepal, Taiwan, Sri Lanka, UAE, Israel, Hongkong, Singapore, Oman, Kuwait, Qatar, Australia, and New Zealand
Europe: Germany, France, United Kingdom, Italy, Spain, Russia, Turkey, Netherlands, Poland, Sweden, Belgium, Austria, Ireland Switzerland, Norway, Denmark, Romania, Finland, Czech Republic, Portugal and Greece
North America: United States and Canada
Latin America: Brazil, Mexico, Argentina, Columbia, Chile, Ecuador, and Peru
Africa: South Africa, Nigeria, Egypt, Algeria, Morocco
|US$ (Data can also be provided in local currency)
|Supplier Database Availability
|The report can be customized as per the requirements of the customer
|Post-Sale Analyst Support
|360-degree analyst support after report delivery
Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.
In order to produce Anhydrous Milk Fat, melted butter is passed through a centrifuge to get butter oil. This step is followed by the vacuum drying process to finally obtain Anhydrous Milk Fat.
The displayed pricing data is derived through weighted average purchase price, including contract and spot transactions at the specified locations unless otherwise stated. The information provided comes from the compilation and processing of commercial data officially reported for each nation (i.e. government agencies, external trade bodies, and industry publications).
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Phone:+1 307 363 1045
Phone: +91 1203185500
Phone: +44 7537 132103