Suppliers on the dairy market looking for demand

The exception to all downward movements is the development with skimmed milk concentrate. This semi-finished product continues to rise in price, although less rapidly than in previous weeks. The product remains in demand, and that demand mainly comes from the fresh market (fresh dairy), because turning it into skimmed milk powder is not possible and demand for the cheese market has virtually come to a standstill.

Whatever other positives there are, are almost not worth it. In Germany, the price for raw milk seems stable to slightly firmer, but on the other hand, the spot milk price in the Netherlands has dropped a few cents.

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This does not mean that there is a negative mood on the dairy market. Producers and traders see little demand. As a result, stocks are increasing slightly and the product is becoming slightly older on average, but this is not yet a worrying situation for suppliers. The current situation is partly determined by the lack of clarity about contract negotiations with retailers and the lack of a clear picture of how European milk production is developing.

Milk powder market
Export of milk powders remains difficult for the time being, although the signals are not clear. The trade argues that Europe is not yet competitive on the world market and should therefore reduce powder prices. However, the differences are becoming noticeably smaller. Also because the route through the Red Sea is not easily navigable and the Asian market is therefore more difficult to serve. On the other hand, European suppliers record reasonably good prices at the GDT auction and the ONIL tenders in Algeria. For the time being, the downward movement is still winning.

This seems to be more the case in the west of Europe than in the east, and not just with powders. The situation has been the case for some time now that skimmed milk concentrate, but also milk powder, fetch a higher price in Poland than in western Germany or the Netherlands. There is still little clarity about how and why.

The whey powder market is also becoming a bit weaker, with declining prices and tame trade. Parties in the feed business have generous inventories and are little inclined to buy much more product quickly.  

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The same 'virus' that has gripped the powder market is also doing its work on the butter market and the cheese market. In the case of milk fat, cream is taking the hardest hit, but the price of butter is also falling slightly.

kaasmarkt
The weakness in the cheese market feels the most unusual. Last autumn the cheese market was very strong, with the occasional short decline, but the market soon recovered. With this in mind, a two-week market softening is almost anomalous. A rapid recovery does not seem to be in the offing yet, but little is clear, or certain is the current, somewhat directionless market. It is not surprising that mozzarella, an out-of-season product, drops the most in price. Gouda foil cheese and Cheddar cannot maintain the old level either, although producers try to give in as little as possible.