Inside: Milk & Food
Bargain price milk has to give up even more ground
Several countries in the European Union beat expectations about milk supply. The winter weather leaves milk production pretty much alone. Not good news at a time when demand is low. More in an analysis of Boerenbusiness Milk.
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The gap is also starting to decrease slightly in France. In week 52, it drops again from minus 7,5 percent to 6,4 percent. In Germany, the winter weather at the end of December resulted in slightly less milk. 5,1 percent less milk is collected there. What is currently happening is that the players on the market were counting on less milk, making the extra liters a problem.
However, it is not yet dramatic, just the timing of the extra liters is not good. It is still quiet from the retail sector, which first clears out Christmas stocks. This puts pressure on the prices of liquid raw materials. For example, the average spot price for raw milk in the Netherlands drops to 31,50 euros per 100 kg of milk. This at 4,4 percent fat.
There is also a lack of supply and demand in Germany and therefore a thin trade. In the north of the country, the price drops to 30 euros per 100 kg of milk, delivered at 3,7 percent fat. In the south, the price for the same fat percentage also amounts to 30 euros per 100 kg of milk. Germany's neighboring country Poland appears to have slightly less milk, but this has not yet resulted in increased demand.
4,65
euro
The quiet market is also sinking its teeth into prices for cream and skimmed milk concentrate. The cream price drops to 4,65 euros per kg ex work. Skimmed milk concentrate dropped in price a week earlier and now amounts to 1.650 euros per tonne of dry matter finished.
Due to the lower prices on the spot market, some concerns are starting to arise about the effect further down the market. After all, a negative sentiment can influence prices of cheese and butter, for example. Although the lower cream prices are already starting to generate more demand. In the Dutch quotations, the butter price takes a small step back, dropping by 5 euros to 431 euros per 100 kg. In Germany the price remains at 4,30 to 4,40 euros per kg.
The other fat products are also taking a step back. In the Netherlands, for example, the price of whole milk powder drops to 317 euros per 100 kg. In Germany the price remains at 3.150 to 3.250 euros per tonne. The price of cheese drops to 3,15 to 3,35 euros per kg.
Protein performs better. For example, skimmed milk powder in the Netherlands amounts to 217 euros per kg for consumption and for animal feed the price comes to 193 euros per 100 kg. In Germany the price is also increasing. For consumption, the price is 2.070 to 2.190 euros per tonne, compared to 1.920 to 1.970 euros per tonne for animal feed. Demand for milk powder mainly comes from outside the EU. Buyers on the domestic market are still cautious. Meanwhile, the supply of older offerings is slowly decreasing.
