July 17, 2017

Getting Ready for the Holiday Season

 |  By: Know Your Market

While there are still 160 shopping days until Christmas and the turkey for your Thanksgiving table has yet to be packaged, buyers of dairy products have already begun to plan. In the same way that Christmas decorations seem to show up in the stores earlier each year, preparations for holiday dairy product needs also begins earlier each year.

With summer upon us, the availability of cream supplies tightens both as a function of shortened milk component supply but also as a function of increased ice cream production. As a result, the value of cream rises this time of year and butter manufacturers will often opt to sell cream to the spot market rather than put it into the churn.

However, of late many plants in the U.S. are still referred to as “active”. Together with bulky inventories, churn activity should be able to keep up with butter sales currently reported as being steady to strong. European butter makers report being resistant sellers, even at record prices, as they prepare for holiday demand.

While some cheese makers have shifted vats toward seasonal demand for cheese curds, many have continued processing core-line products to take advantage of the plentiful milk supply that will be available until school commences next month. With buyer interest continuing to come to the market, it appears that manufacturers around the world are prepared to keep our fall tables full with our dairy favorites.