Rebounding butter market provides Easter surprise

The market has been falling a little further in recent weeks, but this week it is moving in the other direction again. Few had expected that.

The DCA quotation for butter shows a plus of €120 per tonne this week, and the quotation is expected to rise further in the coming weeks.

The cream price will not increase this week, but it will probably rise in the wake of the butter price.

The timing is remarkable, because it is not the most logical moment for the butter market to increase, because the milk supply is still increasing seasonally. The availability of milk fat is also doing that. Incidentally, the spread in butter prices is still high this week. There is Irish product on the market that is offered for €1.975 per ton, but there is also product sold for €7.350 per ton.

The DCA quotation for skimmed milk concentrate is stable, although a considerable spread in prices is also visible.

The cheapest product is still offered from France and the United Kingdom, but the transport costs must also be taken into account in processing, and these quickly add up. However, those who make the right connections in terms of logistics and processing can make money.

The spot market for raw milk is also slightly higher this week than last week, but in general this market is also very stable. This is partly because here too logistical costs quickly even out many price differences. In France, cheap raw milk is available, but buyers can only benefit from this if the milk does not have to be driven far.

The market for milk and whey powder is under the most pressure. This is partly because the powder market is the most international submarket and therefore suffers the most from trade disruptions and all kinds of political and economic uncertainties. In addition, the weak dollar makes the European product relatively unattractive, because it is not competitive.

The cheese market is slightly weaker. For Gouda foil cheese and mozzarella, there are small price differences compared to last week, but sales continue to go well with relatively high production. Most foil cheese is still being shipped at a minimum age, it is reported. The only type of cheese where prices are slightly more under pressure is cheddar. Demand for this is quite weak, while there is sufficient supply.

That the cheddar price is very much in motion is also evident from the price range. There is quite a bit of product available for around €4.600 per ton, but there is also still a certain volume traded above the DCA listing.