levels of obesity and diabetes. Furthermore, the war on sugar will
likely intensify over the next couple of years, as many feel that
they have gained weight over the last couple of years because of
increased levels of comfort eating and greater levels of inactivity.
Secondly, it shows that consumers are concerned about artificial
ingredients that they believe are lacking in nutritional value and
can potentially be damaging to the wider environment.
Concerns about sugar content and the use of artificial ingredients
are something that creates opportunities to promote natural
sweeteners within the dairy industry. After all, consumers are becoming
more health-conscious and 50% state that natural sweet-
FMCG Gurus Column & News ¦ IDM
High prices in the long run?
Forecast by StoneX
US financial services provider StoneX gave a forecast for
the dairy markets in an online event at the beginning of
April. While milk prices in the EU are moving towards ever
new records, they are falling in Oceania due to weaker
export demand. In the USA milk production is down by
eners are a healthier alternative to sugar. However, only 26% state
that they regularly seek out products that contain natural sweeteners,
highlighting the attitude/behavior gap that can exist in this
area. Indeed, consumers can be conscious of the excessive intake
of sugar and artificial ingredients, however, they can be conscious
of the taste element of natural sweeteners, something that can
be linked to legacy issues relating to the aftertaste of stevia. Irrespective
of concerns about health and wellness, consumers are
unwilling to compromise on the taste and enjoyment element of
products, especially in an era when they turn to food and drink
for comfort purposes and to alleviate stress. While consumers may
be conscious about the volume of sugar and artificial sweeteners
in dairy products, brands need to do more to convince consumers
about the sensory aspect of natural sweeteners if such claims are
to be more influential on purchasing habits in the dairy industry.
News
1%, logistical problems are preventing the dairy
industry from benefiting sufficiently from the high
prices in the world market.
A further increase in milk prices is expected in the coming
months, but milk producers will not react until the higher
product revenues translate into a noticeably higher cash
flow for them.
A switch by processors to plant-based raw materials is
only possible to a limited extent, because plant-based ingredients
are also becoming noticeably more expensive,
and there are also ongoing problems with transport capacities.
China is sitting on relatively high stocks, and the government's
zero-covid policy is also making sales and imports
difficult (lockdowns, closure of ports). From StoneX's perspective,
China will remain a difficult market this year,
with imports currently 2% below last year.
StoneX sees a turnaround in prices from the summer onwards
at best, but it will not be very strong; product and
milk prices will probably remain high for the next up to
three years.
May/June 2022 ¦ international-dairy.com · 41
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