Current milk demand: Price increases lead to changes in purchasing behavior - analysis and forecast.

Current milk demand: Price increases lead to changes in purchasing behavior - analysis and forecast.

According to a report by www.elite-magazin.de, consumer demand for dairy products changed significantly from January to September 2023. The demand for drinking milk fell by 4.6%, and milk drinks such as drinking yoghurt or buttermilk also ended up in shopping carts less frequently (-5.1%). Likewise, buyers were slightly less likely to buy quark (-0.3%), while demand for yoghurt (+0.8%), butter (+1%) and cheese (+1.2%) increased.

The increased prices could be an influencing factor for the changed shopping behavior. Consumers spent around 15% more on drinking milk and 16.7% on cheese products than in the previous year. Average spending on yogurt actually increased by 26.2%.

What does this mean for the milk market? The German milk market is heavily export-oriented, but there was a lack of demand on the global market in the first half of 2023, while more milk was produced again in Germany. This imbalance led to a fall in prices and an impact on milk producer prices. The market has now stabilized somewhat. Milk supply is currently nearing its seasonal low and butter prices have risen again.

As a financial expert, one can analyze that these changes in the milk market can have a direct impact on the trade balance and the incomes of milk producers. A drop in prices due to a lack of demand on the global market can lead to loss of income for dairy farmers. However, increased consumer spending on dairy products can also lead to higher sales for dairy industry companies. The stabilization of the market and the renewed price increase for butter are positive signals for producers and traders. Overall, the development on the milk market shows the complexity and interdependence of global trade flows on price developments in agriculture.