Tension in the dairy market due to lower prices

The prices mentioned have not yet reached the lowest level in recent months, because the milk powder price was slightly lower in July, but then the quotations recovered. The feeling of most players in the market is that the price decline may continue this time. This seems to be more important in the Netherlands than in Germany, for example. Most prices for basic dairy there are also slightly higher than in the Netherlands. Many players in the dairy market hope to gain more certainty about the market at the upcoming SIAL fair in France.

Price gap whey powder food and feed
The quotation for whey powder also fell, but less than for skimmed milk powder. Moreover, it is mainly the quotation for whey powder for animal feed (feed) that is and remains relatively weak. Whey powder for food applications is about €300 per tonne more expensive and still in high demand. It is a relatively inexpensive source of protein for use in all kinds of food products, from sauces to sweets and biscuits.

With regard to cheeses, it is mainly the Gouda and Edam varieties that had to take a step back in price. Mozzarella has gone down in price before. The Cheddar price is still the most stable, although Cheddar seems to be losing some ground in terms of price.

Cheese market still fairly quiet
According to several parties, the cheese market is still relatively quiet. Order books are still well filled, there is still a reasonable demand. Good pluses are also paid for extra quality products, such as Frau Antje cheese, but there is doubt about the market. There is also quite a bit of uncertainty about sales in the first months of the new year. 

The butter quotation has fallen relatively little, at least when it comes to the price for fresh butter. However, considerably cheaper batches of butter are also appearing on the market. This concerns most Irish butter in its frozen state. This product is offered about €200 to €300 per tonne cheaper.

Cream, on the other hand, has fallen more sharply in price, but not as much as skimmed milk concentrate. This product lost more than €300 per tonne in price and fell below the €3.000 per tonne mark, the lowest point in more than 20 weeks. According to some parties, this makes it almost worthwhile to start drying powder again.

The spot milk prices for raw milk lost about 2,5 cents per kilo, again clearly below the factory prices that dairy farmers receive. There is no longer a real milk shortage. What there is finds its way, but there is enough to meet the demand. Milk production is currently higher than around this time last year, while the levels in the milk are also rising again.