
CME Cash Market Summary
Daily CME spot dairy market price summary

- Dairy
By: Nate Donnay, Director of Dairy Market Insight
High-protein milk is gaining ground in the Gulf as consumers move away from plain liquid milk toward functional dairy drinks, and the region's dairy makers are reshaping their product lines to match. The shift is unfolding through a period of heavy disruption, with the closure of the Strait of Hormuz forcing Gulf supply chains to reroute dairy imports through smaller ports. While logistics grabbed the attention, a quieter change is taking place on the supermarket shelf itself. For anyone supplying or processing dairy in the region, knowing what Gulf shoppers now want matters as much as knowing how product reaches them.
Nate Donnay, StoneX Director of Dairy Market Insight, has analyzed U.S. and international dairy markets since 2005 and tracks global milk supply, dairy trade flows and price risk for clients across the supply chain. Vipin Kumar, StoneX VP of Dairy Risk Management - Middle East, is based in Dubai, and covers dairy supply and demand across the Gulf, from import flows to the product shifts on the region's supermarket shelves. Between them, they follow the protein trend from global consumption patterns down to the Gulf dairy aisle.
Gulf milk demand is shifting away from plain liquid milk, a staple product in the region, toward functional dairy products led by protein shakes. "People are not very much inclined now towards the liquid milk but they are moving towards the functional ingredients, especially the protein shakes", Kumar says. Liquid milk still holds its place on the shelf, but consumer interest in the Gulf has moved toward drinks that deliver added functional value. The Gulf is no outlier, and Donnay notes that "we're seeing that trend towards protein everywhere in the world". For exporters and processors serving the region, the result is a Gulf dairy aisle where protein content increasingly shapes which products earn shelf space.
According to Donnay, "another good reason to have local production is to meet variations in local food preferences", and Gulf dairy processors are now redirecting investment toward those preferences with high-protein products. Kumar describes a gap in the market that the industry moved to fill, explaining that producers "rewired themselves" and put heavy investment into the protein side of the business. Al Rawabi, a United Arab Emirates dairy company, has launched a high-protein liquid milk in a 1-liter format, while Marmum offers a version carrying 90 grams of protein per liter. As a result, protein in the Gulf is no longer confined to specialist shakes, with flavored milks and other everyday dairy products on the shelf now carrying protein as well.
--- Written by Gus Farrow, Senior Manager, StoneX Media
--- Expert: Vipin Kumar, StoneX VP of Dairy Risk Management - Middle East
--- Expert: Nate Donnay, StoneX Director of Dairy Market Insight
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Daily CME spot dairy market price summary


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Daily CME spot dairy market price summary

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