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Analysis Milk

Cheese prices take over from concentrate

10 February 2022 - Klaas van der Horst

The dairy market as a whole remains 'fixed' this week, with prices still rising and new highs. The pace of price increases in the liquid dairy market has returned to normal this week. However, rapid price increases are now visible in cheeses, especially Cheddar.

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Trade on the liquid dairy market continues to be characterized by small volumes and steadily rising prices. The decline in cream prices, which occurred a few weeks ago, seems to have been forgotten again. The price has continued to rise again. Last week's madness with skimmed milk concentrate seems to be over. The price increases for this product have returned to a more normal level. But for a while it seemed that concentrate might become even more expensive than skimmed milk powder.

The price for raw milk also continues to rise steadily, but noticeably, to €53,00 to €55,00 per 100 kilos and sometimes even higher. In terms of absolute price levels, these are unprecedented heights, but anyone who turns this into skimmed milk concentrate or milk powder and cream can realize a yield of €60 per 100 kilos or more, traders calculate.

However, most dairies do not sell raw milk on the spot market. They desperately need the product itself.

Divided image in powders
The butter price is also slightly higher this week. The picture is slightly more divided for milk powders. The quotation for whole milk powder increased slightly more than that for skimmed milk powder, while the quotation for whey powder intended for animal feed even fell slightly.

Price increases were noted across the board for cheeses, but the real price violence came from Cheddar. Cheddar curd even sells for almost €5.000 per tonne, which is not far from the Emmentaler price. Cheddar mild follows at a slightly greater distance. Both products became more expensive by more than €200 per tonne in one week. 

The price for Edam cheese is stable, Gouda cheese became slightly more expensive. 

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