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Inside Milk

Tight milk supply drives up spot prices further

9 September 2021 - Klaas van der Horst

The tight and lower than expected milk supply continues to push up liquid dairy and cheese prices. It is a situation that is expected to continue for a while.

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This is evident from a tour of traders. Raw farm milk sells for around €45,00 per 100 kilos (+€1,50-€2,50) in both the Netherlands and Northern Germany, according to the DCA quotations. DCA Markets has published. In southern Germany the quotation is still €1,00 higher, albeit in a market with a very scarce supply.

This makes this quotation considerably higher than the average payout price in the Netherlands and Germany. This is explainable because the factories' payment prices lag behind developments on the daily market, but it is problematic. In France, the tension on the milk market is, if possible, even higher. The spot price there is close to €50,00 per 100 kilos.

Skim milk concentrate and cream are also rising
The DCA quotations for skimmed milk concentrate and cream also rose again. This means that concentrate is now almost as expensive as skimmed milk powder (€2.625 to €2.635 per tonne). It is therefore not the powder makers who pull on the concentrate. It is mainly strong demand from the fresh market in Southeastern Europe that drives up the price. 

The cream price has made the largest increase in euros. The DCA quotation for this product rose this week from €5.375 to €5.585 per tonne (+€210). The difference with the butter quotation thus increased again. 

The supply shortages are also having an increased impact on the cheese market this week. the quotation for Gouda (+€130) and Edam (+€110) foil cheese in particular rose considerably. Price increases were more limited for mozzarella (+€70) and mild cheddar (+€25). 

On the powder market, the quotation for skimmed milk powder in particular increased, to €2635 per tonne (+€45). Whey powder also did relatively well and, with a plus of €35, once again exceeded €1000 per tonne (€1025 for whey powder food). 

Click here for an explanation of the DCA quotations (liquid dairy) 
Click here for an explanation of the DCA quotations (cheese) 

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