Dairy market gets knocked down

The strongest decline occurred in milk powders, according to the weekly data DCA quotes. The price of skimmed milk powder feed fell by just 3,5%. Skimmed milk powder food fell slightly less in price. Traders are seeing weaker demand from both EU and international buyers. Export has been a bit more difficult for some time now. Now there will soon be another opportunity to sell milk powder to Algeria (ONIL tender), but that does not seem to move the market much.

Whey powder prices were also under pressure. The relatively large difference between the price for whey powder food and whey powder feed will still be maintained, but there is a chance that this will also be nibbled in the current market. According to traders, whey powder food is still relatively expensive because it is widely used in Asia for the production of sweetened condensation. However, the market for that product is shrinking due to high prices and/or low purchasing power among consumers.

The price of whole milk powder is still the most stable, but this is also because this product is not very liquid.

Mozzarella is doing its best on the cheese market. There have been slightly larger price drops for Gouda cheese and Cheddar. however, that is in a fairly quiet market. It is mainly small volumes of product that are now changing hands.

The butter market is still quite stable, which cannot be said for cream prices. These fell by several hundred euros per tonne this week. Cream has always been one of the most nervous products on the dairy market and this was largely confirmed again this week.

Skimmed milk concentrate also became slightly cheaper, but that was a fairly limited movement. 

Although there has been a broad price drop on the dairy market this week, it is still too early to say that a clear direction has been set. However, a quieter period is approaching now that the summer holidays are approaching and trade is slower.