Analysis Milk
Blow for liquid dairy, powder and cheese rise after
Liquid dairy prices have taken a hit this week. Not because the market has suddenly turned, but mainly because of a lack of manpower. The holidays may fall on weekends, but factory workers and truckers still want to be off.
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As a result of the above, prices for spot milk, cream and skimmed milk concentrate have fallen considerably. German prices for raw milk fell the most, by almost 20%. This is what the DCA listing shows. The quotations for skimmed milk concentrate, cream and butter were also pushed down.
Cautious atmosphere
The lack of staff makes many companies extra careful. There may be a demand for the product on the consumer side, but if the raw material cannot be processed in the factory due to logistical problems or a lack of personnel, then purchasing makes little sense at this time.
This problem is much less prevalent with solid and less perishable products. Prices for both powders and cheeses rose slightly this week. The price level is already quite high at just €4.300 per tonne for Gouda and Edam foil cheese. The milk powders also remain expensive on a long-term basis.
Exceptions
There were exceptions with both of the above products. Mozzarella became €5 per ton cheaper and whey powder food fell €20 per ton in price. Mozzarella still seems like an exotic product to many, but both FrieslandCampina and Royal A-ware now make tens of thousands of tons of it every year.
The price of whey powder is not yet at a level all time high, but has now reached such a high level that buyers are increasingly having difficulty with the price. Whey weighs like a heavy burden, especially for the animal feed industry.