Inside Milk
Demand on dairy market picks up, calm before the storm
Demand on the dairy market is good this week, partly due to the broken week in connection with Ascension Day. The wait-and-see attitude among buyers for the second half of the year also appears to be easing. This results in rising prices.
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The dairy market is still characterized by a limited supply. Demand was also not great, but that seems to be changing due to the relaxation of the corona measures. There was often a wait-and-see attitude among buyers, but the wait-and-see attitude is fading and even turns into uncertainty about possible shortages.
The milk supply continues to lag behind last year's level and Dutch spot milk is therefore scarce. The DCA quotation increases this week by €1 to €37 per 100 kilos. In Germany the price varies between €34 and €36 per 100 kilos.
Cream & butter
The demand for fat for Q3 and Q4 is starting to pick up somewhat and this is resulting in rising prices. The DCA quotation for cream plus increases this week to €4.690 per tonne. And for butter the limit of €4.000 per tonne has been reached again.
Announced relaxations in Europe are also good for cheese prices. Gouda cheese in particular is increasing in value this week, increasing by €60 to €3.010 per tonne. Furthermore, there are more moderate price increases, but an overall better sentiment.
Further increase expected
The limited availability in combination with increasing demand creates the expectation that prices will rise further in the coming period. The trough seems to be behind us and the market expects a further price increase. The overall market sentiment is therefore good. Even though prices are currently on the rise, there is talk of the calm before the storm. The market is expected to open in June.