Analysis Cheese
High butter stocks are in the way of the cheese market
The cheese market is in a period characterized by a lack of demand. It is also expected that producers will process more milk into cheese, given that butter prices are under pressure.
In recent years, butter was the driving force behind the dairy market, which allowed the cheese price to rise. In recent weeks, however, the price of butter has depreciated considerably. This is due to high stocks.
The butter quotation of ZuivelNl dropped this week by €2 to €358 per 100 kilos. It should be noted that this is still a fairly high reflection of the market. Compared to the same week in 2018, the butter price is now €140 lower. The difference with 2017 is even significantly greater.
Cheese gives the best valorization
Due to the downward revaluation of butter prices, cheese is currently the best valorization of raw milk. This makes it likely that more milk is processed into cheese. This depresses sentiment on the cheese market, because higher stocks are in the offing as a result. In addition, the demand from export destinations outside Europe is disappointing.
The mood is not negative, however. The current cheese stocks are not large enough for this. There is also a drought in various parts of Europe, but cheese prices are not responding to this for the time being. The Gouda DCA foil cheese quotation is falling this week by €0,02 to €2,85 per kilo. The price of Edam also falls by €0,02 to €2,77 per kilo.
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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