Butter is the new cream on the dairy spot market

The DCA quote for week 12 was €430 per tonne higher than the week before and reached a level of €7.160 per tonne. There was also plenty of trade above that price. This means that the real market beats the futures market (EEX) once again. The cream price also rose sharply, but at a slower pace than the butter price. However, there is still a large price gap between cream and butter.

The spot prices for cream and also skimmed milk concentrate are so high that this value combination beats all other options. These two products justify a milk price of between 60 and 65 cents on the spot market, it is said. Such a situation naturally only applies to a limited volume of product, because it is caused by scarcity. Yet this valorisation keeps a considerable volume of milk away from the cheese vat and from the powder towers. The spot market for raw milk also remains clearly below the stated price level.

In the case of cheeses, it is again the mozzarella that beats the competition in terms of value. With a higher standard moisture content and a lower dry matter content, and also easier to make, this type of cheese scores €5.120 per tonne, which is €100 more than Gouda cheese.

Intrinsically cheaper mozzarella beats other cheeses
And frankly, at its current rating, mozzarella also beats the more expensive Cheddar and Emmentaler cheeses. They contain even more dry matter than Gouda or Edam cheese. Nevertheless, the market apparently needs more mozzarella at the moment.

However, mozzarella production continues to lag behind demand, due to both a lack of milk supply and strong competition for milk from the liquid segment.

In the meantime, the price increases were most calm for milk powders. In the case of skimmed milk powder, the price for milk powder feed in particular made an extra catch.

Traded volumes fall
While traders are gradually becoming more concerned about the price level, no one seems to anticipate a change in the trend yet. Prices continue to rise and demand remains strong. It is true that transactions in terms of volume are getting smaller and smaller on average. This is undoubtedly the result of the high prices. Where previously ten trucks of product could be paid for, there is now often only half of the money.