Development of the butter prices Demand in the near future
Agenda A view to the butter market 1. Uelzena Group 2. Hoche Butter GmbH 3. Derivation by review back to 2017 4. EEX European Energy Exchange 5. View at 2018 Review Facts Expectations 6. Influencing factors January 31, 2018 Development of the butter prices and demand in the near future Hendrik Schulze Hoche Butter GmbH 2
Uelzena Group & Hoche Butter Facts & figures Business areas
Uelzena group Business areas Business units Ingredients & Contract processing Instant beverages Health products Dairy products Target groups Food ingredients industry Food & Beverage industry Vending / Operators Artisanal bakeries Consumer (Retail) Specialised wholesale trade January 31, 2018 Development of the butter prices and demand in the near future Hendrik Schulze Hoche Butter GmbH 4
Uelzena Group Data 2016 General key data: Company foundation Uelzena Group Milk received Employees Sales 1952 7 532 693 529 Firms Mio. kg People Mio. January 31, 2018 Development of the butter prices and demand in the near future Hendrik Schulze Hoche Butter GmbH 5
Uelzena Group Data 2016 Main product groups: Cheese Health products / Vending Butter Butterfat Milk powder Contract drying SCM / Delicatessen / Premix 65 96 96 70 131 14 40 Mio. Mio. Mio. Mio. Mio. Mio. Mio. January 31, 2018 Development of the butter prices and demand in the near future Hendrik Schulze Hoche Butter GmbH 6
Uelzena Group Companies Uelzena eg Butter specialities Butterfat Instant beverages Health products WS Warmsener Spezialitäten GmbH Sweetened condensed milk Cream for delicatessen Yoghurt products Altmark-Käserei Uelzena GmbH Butter Cheese MTW Milchtrockenwerk Norddeutschland GmbH Skimmed milk powder Hoche Butter GmbH Butter Butter specialities Blended spread Butterfat Trilactis GmbH Butter Butterfat Uelzen Warmsen Bismark Joint Venture Neumünster Uelzen Saarbrücken H. Schoppe & Schultz GmbH & Co. KG Ratzeburg Instant beverages January 31, 2018 Development of the butter prices and demand in the near future Hendrik Schulze Hoche Butter GmbH 7
Hoche Butter GmbH Part of Uelzena Group since 1997 Product portfolio German branded butter Butter for bakeries Puff pastry butter Anhydrous milk fat Blended Spreads Target groups Baker s and confectioner s craft Specialised wholesale trade Fresh-services Food retail January 31, 2018 Development of the butter prices and demand in the near future Hendrik Schulze Hoche Butter GmbH 8
Development of the butter prices Demand in the near future
EUR/ 100 kg Derivation by review back to 2017 Block-butter-quotation Kempten GER / NL/ FR / EEX 750 700 650 600 550 500 EEX quotation GER quotation NL quotation FR quotation 450 400 350 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 Source: www.eex.com January 31, 2018 Development of the butter prices and demand in the near future Hendrik Schulze Hoche Butter GmbH 10
EEX European Energy Exchange Trading of agricultural derivatives Introduction as protection for producers and customers Rising liquidity Future transaction not analog physical market Denmark 2% Finland 3% Italy 4% Portugal 1% Spain 2% Austria 2% Belgium 2% Czech Republic 1% Lithuania 1% Sweden 1% Reminder 3% EU-Butterproducers Germany 24% Rising protection due strong volatility in 2017 United Kingdom 6% Ireland 9% France 19% Poland 9% Netherlands 10% Source: ZMB, natioanal statistics, IDF January 31, 2018 Development of the butter prices and demand in the near future Hendrik Schulze Hoche Butter GmbH 11
View at 2018 Review 2017 a successful year for farmers Continuous and monthly rising milk prices Increasing level of production until 2nd quarter of 2017 Interplay between supply / demand until 4th quarter of 2017 unstable prices Milk production by the turn of the year above the previous year s level in GER/EU/Export countries Trend of the volatile markets also expected in early 2018 January 31, 2018 Development of the butter prices and demand in the near future Hendrik Schulze Hoche Butter GmbH 12
View at 2018 Facts High prices in 2017 had no impact on the sales of butter/ butterfat Industry customers Quality-conscious bakeries (Hoche Butter GmbH) Consumers are cautious due to the rising prices The image of butter and butterfat was not damaged Rising sales quantities due to decreasing prices January 31, 2018 Development of the butter prices and demand in the near future Hendrik Schulze Hoche Butter GmbH 13
View at 2018 Expectations Volatile markets are furthermore a challenge for the dairy sector Conversations and expectations show currently a certain sedimentation Historically, the emerging sediment is a foundation at a higher level These factors tempt us to say that the extreme peaks of 2017 will not be repeated in 2018. January 31, 2018 Development of the butter prices and demand in the near future Hendrik Schulze Hoche Butter GmbH 14
Influencing factors Market of butter and butterfat is influenced by Worldwide milk collection Euro-dollar rate Seasonal variations Other milk products Political factors intervention EU assistance programmes January 31, 2018 Development of the butter prices and demand in the near future Hendrik Schulze Hoche Butter GmbH 15
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