Declining butter and skimmed milk powder prices in the EU as well as in world markets are now impacting on the price of cheese.
“The fact that the market situation fluctuates between favourable and less favourable periods is nothing new,” Managing Director Jens Bigum told a meeting of Arla Foods' Board of Representatives in Rebild, Northern Jutland, last week.
”Current trends are less favourable and the coming months are unlikely to see much improvement. Prices have not yet bottomed out,” Bigum said.
For Arla Foods this means that the scarcity of milk over the past year has turned into a surplus. Another challenge lies in the disposal of the fats surplus due to the development of more reduced-fat products for the domestic market. Consequently, a project has been initiated aimed at analysing the over-supply of fats expected in the coming years and identifying solutions for profitable sales of milk fats.
"One option that we’re currently looking into is to strengthen international sales of Lurpak,” said Bigum.”Other ideas are also under consideration.”