Analysis Milk
Raw milk and concentrate should leave spring
Raw milk prices are dropping for the first time in a long time. Prices for skimmed milk concentrate and skimmed milk also fell this week. It is attributed to a combination of extra availability and a series of outages at processors.
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Prices for raw milk in the Netherlands and Germany fell by an average of more than €5 per 100 kilos this week. Apart from the annual Christmas dip, this has not happened in months. According to market parties, slightly more product is gradually becoming available.
Prices for skimmed milk concentrate also fell, but prices for this product have fluctuated more often. And at around €3.400 per tonne they are still high. The question remains whether the drop in prices is a one-off and will pick up again next week, or whether the peak has really passed. In the meantime, the distance between the price of concentrate and that of skimmed milk powder has returned somewhat more to normal proportions.
In the meantime, the price of cream became slightly firmer again, while the price of butter also rose. Availability is tight and there are virtually no stocks (for butter), while the industry is already starting to stock up on extra product in anticipation of Easter. This still seems far away, but companies want to prepare in advance to organize their product range for that period.