Unstoppable rise in dairy prices

In most places the volume of milk supply is decreasing. In Germany, for example, compared to a year earlier, 4 percent less milk is seen in various places. The warm weather is now showing itself in the levels. Warmer weather usually produces lower levels, but now they have been failing all season. Fat in particular remains a problem.   

Sharply rising prices
For the buyers who waited, it is a hard blow. After a cautious start, dairy prices continued to rise towards the end of May. Mozzarella in particular attracts attention. This is due to rapidly rising prices. Good demand from Asia has again resulted in prices of 2017 to 3,40 euros per kilo for the third quarter of 3,50.

The other types of cheese: Gouda and cheddar, are also fetching increasingly higher prices. For example, the German stock exchange still recorded a price of 3 to 3,20 euros per kilo for Gouda and Edam, but on the daily market a price of 3,30 to 3,40 euros per kilo is made. It has been a long time since the daily market beat the stock market. The price is even higher for direct delivery, if product is available. 

Cheddar joins the ranks. This despite the extra liters of milk in Ireland. For white, the price is 3,45 to 3,55 euros per kilo. The red version is more likely to cost 3,80 euros per kilo. The rising cheese prices are placing a firm floor on the milk price. 

Butter price top in sight?
Yet it is again butter that beats all expectations. In the Netherlands, for example, the price rises to 507 euros per 100 kilos. In Germany the price is 5,20 to 5,50 euros per kilo. Supply remains tight. On the daily market, the price has already risen to 550 euros per 100 kilos. It is indicative of the market. For example, a butter price just above 5 euros seemed like a good move for Aldi and Lidl, but they have also been overtaken by the market.

Is there a top of the market? Probably not due to a lack of supplies. The cream price increases to 6,30 euros per kilo ex work. Despite the higher prices, the trade in cream continues steadily.

Whole milk powder is included. Higher prices are also visible there. In the Netherlands the figure is 2.950 euros per tonne. In Germany the price is 2.900 to 3.000 euros per tonne. Together with cheese, this provides the best valorisation.       

Higher price for raw milk
The spot market is also picking up due to rising prices for manufactured goods. Occasionally they even pay 40 euros for the milk. On average, the price in the Netherlands is 38,50 euros per 100 kilos of milk, delivered at 4,4 percent fat. In the north and south of Germany, 3,7 percent fat delivered costs 37 euros. 

There is still plenty of room for higher prices towards the summer holidays. The market has once again taken an unexpected turn. 

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