Driver shortage hampers dairy trade

The dairy market has two faces. Trading in fixed commodities is very quiet. There is more to experience in liquid dairy. A lack of drivers sometimes makes things hectic. Broadly speaking, it can be concluded that there is sufficient liquid product in the north and east of Europe. There is a shortage in the southern countries. This is actually the case every summer, but this year more than usual.

Transport not to be found
Italy always suffers from shortages during the tourist season, which is exacerbated by the extreme drought and scorching heat. Italian milk production has dried up considerably. There is a lot of demand for milk, cream and milk concentrate. However, liquid sales are encountering problems. This is because transport is difficult to arrange and often at sky-high prices. A surplus of cream from Eastern Europe (particularly Poland) causes the DCA quotation to drop by €125 to €8.325 per tonne. The trend is clearly downward. Remarkably, spot milk prices are rising; more than €60 per 100 kilos are paid for South German milk. The caveat here is that the trade is very thin. Italy is mainly oriented towards France for milk, because of the much more favorable price.

Summer weather
The price of skimmed milk concentrate benefits from the beautiful summer weather in Northwest Europe, which increases demand from the fresh segment. DCA's quotation passes the €3.500 per tonne mark this week. This is no longer considered a raw material for skimmed milk powder, the price of which is falling again due to weak export demand. This despite the weak euro. Demand for butter is also weak, just like cheese. The permanent dairy market is in summer recess. This is reinforced by the cooling sentiment on the commodity market in general.