Dairy market turns green, whey powder breaks trend

The dairy market is predominantly green. In principle, trading is quite calm. According to dairy traders, this is not a disadvantage, because finding transport is not an easy job due to the holiday period and because other liquid products are also transported more often.

The quiet trade is a result of tight availability, because milk production is lower due to the seasonal trend and the dry weather conditions in Southern Europe put extra pressure on the milk supply there. Partly because of this, there is also a growing demand for European dairy from Southern Europe, which causes higher prices.

Room price skyrockets
This week, cream is once again the outlier on the market and the DCA quotation rises by no less than €150 to €4.930 per tonne. This is the highest price level this year after €70 and also the highest price around this period in the past 3 years. The price of butter is also rising this week, but cannot keep up with the rate of increase in the price of cream. Butter increases by €70 to €3.930 per tonne.

Concentrate and powders
Skimmed milk concentrate is also becoming more expensive due to tight availability, mainly due to lower production in France. The DCA quotation increases by €85 to €2.510 per tonne.

The quotations for skimmed milk powder and whole milk powder are also increasing, but less sharply than concentrate. Skimmed milk powder increases by €40 to €2.515 and whole milk powder increases by €25 to €3.095. Because the price of concentrate has risen to such a high level, it is not attractive for powder producers to produce milk powder. Powder producers therefore have a wait-and-see attitude.

Whey powder is the only one to break the rising trend this week and cannot achieve a price increase. The DCA quotation drops by €10 to €960 per tonne.