Analysis milk
Liquid dairy particularly stable during the holidays
The liquid dairy market is almost unique during the current end-of-year period. The quotations for raw milk, but especially for skimmed milk concentrate, whey concentrate and cream, have barely 'dipped'. For the new year, the prices for cream and skimmed milk concentrate are even increasing again.
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This is evident from the data received by DCA.
During the December period up to just before Christmas, prices fell more than during the holiday season.
The market for raw milk currently seems to be the weakest. Prices for this have fallen the most in the past week and a half. Little improvement is also expected for the coming weeks. This is still mainly an expectation, but based on transactions that have already been completed, and on the assumption that the dairy market will still be quite weak in January.
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For semi-finished products, however, this does not really apply. The quotation for skimmed milk concentrate has remained virtually stable, but is now looking for a way up again. The DCA quotation therefore shows a small plus.
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The same is happening with cream. In recent days, the product has been trading at its lowest for €7600 to €7700 per tonne of dry matter, but now prices of €8000 per tonne and more are being paid again.
Concentrates of good and stable food quality are the most popular, but even less high-quality products still change hands for relatively high prices.
The explanation often given for the consistently high prices is that there was sufficient processing capacity during the holidays and that market parties continue to see good opportunities to sell the end product profitably.