Inside: Dairy Market
Price of free milk continues to rise
The price for free milk is gradually increasing further. This increase is taking place in small steps, but it will continue. The price for butter rose much more explosively, which is pulling the cream price along with it. But then there is also a batch of skimmed milk powder (SMP) that will be offered through intervention.
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The Dutch milk supply remained fairly stable in week 6 and even showed a decline in some places. The cold weather has not left the cows completely alone. In the meantime, the temperature is slightly lower again and this improves milk production.
More trade in milk
It has no effect on the volumes of milk, more of which appears to have been traded. In the Netherlands, it turned out that larger parties had changed owners again. It gives support to the prices, which even had the chance to rise slightly. For example, the price for raw milk in the Netherlands is €25,50 per 100 kilos (delivered at 4,4% fat).
22
euro
The market in Germany is also showing slightly friendlier conditions and prices are increasing. For example, milk in the north (at 3,7% fat) goes to €22 per 100 kilos. In the south the price increases to €23 per 100 kilos.
The fact that there is no more in the barrel is due to the growing difference between fat and protein. For example, skimmed milk concentrate remains at €775 per tonne of dry matter ex-factory. From February 16, you can again register for skimmed milk powder from intervention. The volume offered is the largest volume to date. Next week it will become clear how much volume the market wanted.
Room prices are rising rapidly
Milk protein continues to post low results, but the price of cream rose very sharply this week. This went from €4,80 to €5,20 per kilo ex work. Butter prices are considered as the underlying cause. This already went to €4.350 per tonne in the ZuivelNL quotation, but currently appears to be around €5.000 per tonne.
The increase in fat also pulls the cheese upwards. The price is €2,65 per kilo, ex-factory. Good news, because this means that even more milk can be moved to alternative products.
The dairy market is approaching Easter at a fairly relaxed level. Additional liters are still provided, but the current situation means that stocks can already be reduced to a comfortable level.
The closing price of butter, compared to the closing price of skimmed milk powder.