An increasing supply of French products is reducing the tension in the liquid dairy market. In the Netherlands and Germany, the effect of this is still small. Meanwhile, the butter price is catching up and the cheese price is also rising sharply.
This is evident from this week's DCA quotations for raw milk. Where significant decreases are reported from France of €8,00 to €10,00 per 100 kilos of milk, the decreases here are limited to €0,50 cents to €1,50 per 100 kilos.
The price for skimmed milk concentrate remained stable and the cream price went up even further this week. But the increase is now coming to an end, according to most market parties. The reports that the worst shortage in the liquid dairy market is over are working. Another factor is that there is much less demand for skimmed milk concentrate from Southern Europe now that the holiday season is really over.
While the cream market calms down, the butter market is catching up. The last old stocks of butter have now been put on the market, traders point out. Fresh product must now be used, but there is none. At least not on the free market. Product has been contracted by the supermarkets and producers are trying to shift the supply a bit, but where possible, cream is produced and not fresh butter. Room has a much better value. Virtually, fresh butter should yield between €5500 and €5600 per ton, it is reported.
Powder prices are rising at a more leisurely pace, but continue to climb steadily. The full and skimmed milk powders clearly outperformed here in terms of price movements than at Fonterra's GDT auction earlier this week.
Finally, the cheese prices are doing better again. The prices for Gouda and Edam foil cheese in particular have risen sharply. The magical limit of €4000 per ton is therefore not far away. Prices for Cheddar and Mozzarella have risen slightly more slowly, but they are not bad either.
For dairy farming, rising dairy prices mean higher payouts are in the pipeline, but rising energy prices seem to be becoming a threatening factor.