Dairy market is slowly declining a little

It is not dramatic yet. The DCA spot milk prices in the Netherlands and Germany are losing more than one euro per 100 kilos. The price for skimmed milk concentrate is marking time, where it was still rising well last week and the cream price is also falling by more than half a percent. The causes are pointed to a slightly increasing supply of milk and semi-finished products and weak demand.

Now the extra supply is limited to some cheap cream and butter from Poland and the Baltic countries. It does depress prices on the market a bit, but it doesn't have a very big impact. There is a possibility that this will change in the coming weeks, but milder weather is needed for that. Moreover, it is not yet possible to predict whether the milk supply will also remain depressed due to bluetongue effects. The fear is that it will, but there is no clear evidence for this yet. 

Slightly more pressure on milk price
For the dairy farming sector, the above means that the milk price they receive may come under a little more pressure, but this price is not really undermined yet. In order to prevent this from happening, it is necessary that the markets for milk powders and cheese remain somewhat stable. This is not guaranteed. Most cheese prices will have to let up again this week.
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The same picture prevails with milk powders. Most products have to take a step back in terms of sales price.

The price of butter, on the other hand, remains stable, making this product suddenly seem like a beacon of calm after months of tension.
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The suspicion is that this will not last long. In the coming weeks, the milk supply will increase and there will also be more pressure on prices. Unless more export opportunities arise.