Analysis Cheese
Butter price pulls cheese market down
The butter price falls for a few weeks and this is not good for the cheese market. Producers, trading houses and buyers revolve around each other, so that there is hardly any trade. The DCA foil cheese quotations for Gouda and Edam are once again turning red.
The price of milk fat is under pressure. ZuivelNL's butter price fell this week by €4 to €385 per 100 kilos, but that is still a high reflection of the market. The prices of German block butter have now fallen to €340 per 100 kilos. The ample stocks are fueling the declining trend. However, there is a lack of export demand from outside the European Union, despite the fact that European butter prices are competitive on the world market.
Increasing stocks
Due to the decreasing quotations of milk fat, the valorisation of raw milk into butter and skimmed milk powder has become less interesting compared to cheese. Also because the price of skimmed milk powder is at its ceiling; ZuivelNL's quotation even fell by €2 to €210 per 100 kilos this week. That is why a relatively large amount of milk is currently flowing into the cheese vat, which means that increasing stocks are in the offing.
Purchasing parties vote on this and wait to buy. The cheese trade has therefore been very calm this week, with prices still under some pressure. The DCA foil cheese quotation (Gouda) drops by €0,02 to €2,85 per kilo. The quotation for Edam yields €0,01 to €2,77 per kilo. The downward trend is expected to continue.
This article is part of the subscription Boerenbusiness Milk & Feed Pro† In the coming period you can check the weekly cheese analysis of Boerenbusiness read for free for a limited time.
Wouter Job
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