Dairy: The increased ’appetite’ of the Greeks and the price increases
The dairy industry must deal not only with the forthcoming challenges of absorbing price increases in raw materials, fuel, and electricity of agricultural holdings, along with the increased demand due to the reopening of markets, but also with the consequences of the bad weather conditions in the cereal harvest since last spring, that made the production much more challenging.
Tuesday, November 30, 2021
According to market experts, the last factor mentioned above, led to animal feed increase 15% to 20%. Another “Extreme” example is the corn’s price, which this year reached 0.35€/kg, from 0.23€/kg last year. A percentage that affected the cost of milk production, and varies among cow’s and sheep’s. The first "victim" of price increases, according to the same sources, will be fresh dairy products followed by ripened cheese, that may reach up to 5% , while the situation will start de-escalation at the summer of 2022. Yet, the industry avoids to make statements on price increases, because the discussion on this issue, is perceived even as a concerted action against other companies.
Statista estimates a five-year high for the Greek dairy and egg market
In the medium term, the Greek dairy market will see its revenues rise, according to a recent Statista survey. The turnover of the dairy products and eggs is estimated to reach 3.9 billion euros (3.2 billion euros) this year, and to exceed 4 billion the next five years. It should be noted that, according to Statista, 2020 reached $ 3.6 billion, the largest turnover since 2020. Sales volume is estimated to reach 761 tons by 2026, but to decrease by 0.6% in 2022. Finally, per capita sales of dairy and eggs are estimated at 308.57 euros in 2021.
Referring to prices in dollars, research shows that the category of cheeses (there is no specific reference if feta is included) will reach a five-year high this year, from $ 12.67 in 2015 to $ 15.14 per piece. Respectively, the price of yogurt is recorded as the highest this year, also from 2015, while the price of milk substitutes is leading to stabilization from this year until 2026.
Christina Papagianni
Source: FOODReporter: #0619/ 22-11-2021