Cheese market returns to old pattern

Cheese prices have been moving fairly flatly since February, with a slowly rising trend again in recent weeks. With price increases of a few tens of euros per week per tonne, this should not really have a name. Since mid-March, the DCA quotation of Gouda cheese has increased by 3,5%, which is negligible compared to the price increases that were visible in the second half of last year.

Don't undertone negatively
Nevertheless, the slowly rising trend is a signal that the undertone on the market is less negative than on the butter and milk powder market. Despite the high milk supply in Northwestern Europe, cheese stocks are described as tight to normal, in contrast to powder and butter, which are in ample supply. In light of the high inflation, cheese sales to the retail channel are not disappointing. Producers hope that cheese consumption can pick up, now that various retailers have adjusted the cheese prices on store shelves downwards.

However, the cheese market is not expected to become dynamic in the coming weeks. Relatively cheap cheddar comes from Ireland to mainland Europe. The seasonal peak in milk is just around the corner, which means there is still a lot of cheese in the pipeline. This offers buyers the opportunity to take a look at market developments.

Stable cheese market
By the way, persistently stable cheese prices are not unusual. In the past, the cheese market was often stable for months. For example, from the summer of 2020 to the late summer of 2021, Gouda's quotation moved in a narrow range of €2.800 to €3.000 per tonne. Based on the current market image, it would not be surprising that the cheese market will continue to maintain a stable price image for the time being.