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Analysis Milk

Cheese keeps the mood in calmer market

8 April 2022 - Klaas van der Horst

With liquid dairy slightly down across the board and milk powders largely stable, this week only cheese remained as a product with prices still rising.

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For the cheeses, an average of about €80 per tonne was added. Price-wise, mozzarella remains overvalued, but it is also the product in greatest demand. A supply surplus, which was feared less than a year ago due to additional production capacity, is no longer an issue at all. 

The other types of cheese also performed well. Edam cheese was slightly behind Goudse - also due to healthy demand. Cheddar rose the most in price in euros and is trading at around €5.500 per tonne.

Among milk powders, whole milk powder was the odd one out this week. While the price of butter fell sharply and skimmed milk powder became only slightly more expensive, the price of whole powder rose relatively sharply. It is not immediately clear what conclusions should be drawn from this, but these are striking movements.

Meanwhile, a slight drop in prices was noticeable for whey powders. Whey powder remains an extremely expensive product for the animal feed sector.

There was a strong downward correction in liquid dairy, with most of the gains from the previous week being lost. Especially with cream and skimmed milk concentrate. 

Raw milk prices also fell slightly on the spot market. Whether these movements are mainly a result of the traditional dip shortly before Easter, or whether an increasing milk supply and perhaps a sober look back on the past week also played a role? They may all have had their effect. More will become clear next week. Then additional purchases are made for the period after Easter.

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