Semi-finished products make the music in price increases

This week, it is mainly the German spot prices that are taking an extra step up. It would be too much to say that there is a real shortage of milk, but there is also very little left. Some processors still have enough of their own milk, but there are also a number that could use a bit more - due to a declining supply from their own farmers and also due to a good demand.

Companies are producing plenty of cheese, but this product is also selling well, although the price is not moving very fast at the moment. Gouda and Edam foil cheese are selling well. Mozzarella is also doing well. In terms of value, these products are also doing well, partly thanks to the whey sales. It is the most profitable commodity combination at the moment.

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Cheddar is having a bit of a hard time, especially because there is a lot of cheap supply from Ireland and the United Kingdom. The listing for 'regular' natural cheese is also under pressure because of a slightly too generous supply. This will correct itself over time.

There is little to report about the milk powder market. The listing for skimmed milk powder in particular remains extremely stable, although traders believe that there is slightly more interest from Africa and Asia. Those who make fat-filled milk powder (skimmed milk powder combined with palm oil or sometimes another oil) and sell the cream separately can also achieve a good valuation.

The whey powder price is also quite stable, although this week the quotation for regular whey powder food is a few percent higher than last week.

The cream price has shot up sharply in recent weeks and is now slightly further ahead of the butter price this week.

The butter price has also risen, but more moderately, which has been reinforced by the fact that here and there extra cheap supply has come onto the market, either in the form of extra Irish product or via consignments of butter from outside the EU, particularly New Zealand.

Meanwhile, price differences between European, New Zealand and American butter persist.

The strongest climber on the (commodity) dairy market remains skimmed milk concentrate. The supply of this is decreasing slightly, but that is not the whole story. Ice cream makers, producers of fresh dairy, buyers from Southern Europe and powder makers are also pulling it.

And with the current price level, the latter will continue to do so. If concentrate were to become a few hundred euros more expensive, it is likely that those powder makers would start selling concentrate. Because then there would be little to be gained from the (skimmed milk) powder production.