Analysis dairy business
Factory strikes only push down spot milk prices
It is not easy to summarize the sentiment on the dairy market in a few words. Various aspects influence the market, such as the strikes at several dairy manufacturers. At the same time, the weather is improving and the Global Dairy Trade provided a positive stimulus.
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The fact that production workers in the dairy sector (FrieslandCampina and Bouter Cheese) are also striking during the peak of the already ample milk supply is an unfortunate coincidence. At least for producers. Trading companies make good use of the situation, they simply benefit from commotion and movement. Especially on the milk spot market, it took every effort to find buyers for the widely available volumes. This results in a drop in spot milk prices, which are heavily undervalued compared to the commodities. The Dutch market is dragging the German market down.
Room in the elevator
Cream and skimmed milk concentrate are gaining some ground, mainly due to the increasing temperatures in this part of Europe. This strengthens demand from the fresh segment, in combination with the start of the tourist season in Southern Europe. In addition, cream is severely undervalued compared to butter, which triggers bargain hunters.
Milk powder benefits from Onil tender
The permanent dairy market does not pay much attention to the strikes. Across the board, the market feels quite steady, with prices moving predominantly sideways. Skimmed milk powder is gaining ground, thanks to the higher Global Dairy Trade. The Algerian Onil tender is creating additional demand. This will relieve the powder market of the increasing stocks in recent months.
The cheese market also looks quite steady, especially Gouda and Edam. The extradition ages are young and are also declining. In addition, the lower prices on the store shelves stimulate sales.