Inside Milk
Big pluses on the dairy market
In the first week of the new year, the optimistic feeling in the dairy market is increasingly taking shape. The first result of the Global Dairy Trade (GDT) in New Zealand bears witness to this and the DCA dairy quotations are also on the rise.
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
During the last auction of 2018, the GDT already showed an upward trend and that trend will continue in the new year. The price of skimmed milk powder is particularly striking; it rose 7,9% to $2,201 per tonne. Butter (+3,9% to $4,076 per ton) and cheddar (+3,2% to $3,371 per ton) also rose. The average price plus by 2,8% to $2.986 per tonne.
The price of skimmed milk powder rose to the highest point in 1,5 years and has finally left the price trough behind. The prices of skimmed milk powder are also rising in Europe. The revival is a result of declining intervention stocks and good export forecasts.
Fewer cows in Germany
Closer to home, the spot market is also dominated by rising prices. The availability of raw milk is scarce, which means that the DCA quotation for raw milk in the Netherlands increases by €4,50 to €33,50 per 100 kilos. The trend is also increasing in Northern Germany; the quotation increases by €5 to €31 per 100 kilos.
The limited availability of raw milk in Germany is a result of the decline in the dairy herd. Last November, Germany had 4,1 million dairy cows, a decline of 2,3% compared to 1 year earlier. There has been a decline, especially in the state of Bavaria.
Room prices up
Also the cream prices sprint this week. The DCA cream price will increase by €550 to €5.000 per tonne, a serious step. The cream price benefits from the good sentiment on the butter market; prices of €4.400 per tonne are heard for butter.
The price of skimmed milk concentrate is benefiting from rising prices on the powder market. This increases the DCA quotation by €200 to €1.200 per tonne.
