Speaking at Dairy-Tech Online Dairy Market Overview this week, Jonathan Dixon of Arla Foods, spoke about how more people working from home have resulted in increased sales of dairy products.
“Consumers have turned to dairy products in times of crisis”,he said.
âThe grocery market is booming with a huge recovery and total food growth of 10%. On the other hand, the restaurant industry has seen a downturn with tough closings. ”
He said dairy products increased because consumers took more care of themselves during the lockdown and spent more time at home.
âCheese consumption increased 15.7% with more people eating cheese for lunch. Yogurt sales increased 4.1% and butter 16.1%, especially bulk butter sales, due to the increase in the number of people making home baking.
Rob Hutchinson, chief operating officer of MÃ¼ller, said the company saw strong retail sales during the pandemic.
âThe consumption of cereals is up 8%, which is good for milk sales. The challenge now is to maintain the level of consumption upon exiting containment.
âI am cautiously optimistic about the outlook for the market. Markets rallied after March of last year and the global stock position is below what we expected for this year which is a good position. ”
The exception is cream, which has a great price disparity compared to the EU. This is in large part because of Brexit and the additional export health certificates now required when exporting fresh produce, like cream.
Hutchinson added, “We hope to see the situation improve because there is no doubt that this has an impact on the price of the cream.”