Milk powder must be released in a stronger dairy market

It remains difficult to really get the milk powder market moving, it appears. Last week, prices for milk powders rose, but that was mainly because the entire market suddenly shot up. This week the momentum had slowed down again.

Not enough milk powder is exported and prices on the world market are too low to really see prices in Europe rise. The sales of milk powder that exist mainly take place within the EU. This is enough to maintain the current price level, but no more.

Prices for butter and cream are still moving at the other end of the spectrum. The DCA quotation increased this week for both products by €105 per tonne. That is no longer the pace of last week, but still a significant price increase. It seems that a peak has also been reached here.

Best value, little work
Although skimmed milk concentrate has fallen in price, the combination of concentrate and cream (which is highly priced) is currently the best valorization option in the dairy market. At least when it comes to bulk raw materials. Little processing is required to make concentrate and cream, but a milk price of around 50 cents or more can easily be paid.

Not as strong as with milk fat, but prices are still being boosted on the cheese market. The mozzarella marking moves the least, but Gouda and Edam foil cheese, natural cheese and Cheddar receive a clear plus.

There may be an additional price increase in the coming months, but that is still difficult to say. The point is that the milk supply will not really increase in the near future, but will actually decrease. Product availability is therefore becoming tighter.

The fact that the availability of milk is decreasing and the demand for raw materials is increasing is also evident from the spot quotation for raw milk. It did not increase very quickly this week, but it still increased by a few percent.

According to market sources, the demand for milk in the north of Germany is currently almost even greater than in the Netherlands.