Shutterstock

Analysis milk

First Christmas effect appears on the dairy market

1 December 2023 - Klaas van der Horst

A first Christmas effect seems to have hit the dairy market this week. Not in solid dairy, but liquid semi-manufacturers did suffer a setback. Cream prices fell and concentrate experienced an even sharper decline in demand. Raw milk also feels a little weaker.

Do you have a tip, suggestion or comment regarding this article? Let us know

Anyone who only looks at the cheese market would think that nothing is happening yet. Yet here too the peak seems to have been gradually reached. The sales price for Gouda foil cheese remains around €4.250 per 1.000 kilos. The fact that the DCA quotation still rose this week is mainly due to the translation of this price in the chain. 

The above does not mean that the foil cheese price cannot increase anymore. Not all buyers have met their needs for the first quarter. This is understandable, because it is still difficult to assess what the dairy market will be like after New Year's Eve. 
Milk production has bottomed out, but how quickly will production pick up again in the coming weeks? And what does consumer demand do?

The demand for cheese is and will remain good for the time being. Producers have relatively few inventories. According to most reports, the cheese delivered is quite young.

Compared to foil cheese, the prices for other types of cheese are still lagging behind. Gouda (and Edam) natural cheese is still catching up. Producers are trying to shorten that phase by making more foil cheese.

Cheddar has risen in price faster. At least on the European market. Those who can use products from the world market can purchase cheaper.

However, European parties still manage to export their more expensive product. For example, European parties have only recently completed a large part of an Algerian tender and European companies elsewhere are still able to export products based on product quality.

The increase in the whole milk powder price can largely be attributed to the higher price for milk fat. The actual free trading volume for this product is limited.

The liquid semi-finished products are cheaper this week. Cream has already been mentioned. Skimmed milk concentrate fell even further in price due to weaker demand. There is less need for fresh produce, but also for cheese production. The quotation for raw milk moved slightly downwards.

Call our customer service +0320(269)528

or mail to support@boerenbusiness.nl

do you want to follow us?

Receive our free Newsletter

Current market information in your inbox every day

Sign up