Analysis milk
Liquid drops fastest in calmer dairy market
The dairy market remains weak and holiday-like this week. So, not much is happening, but the average price decline is slightly smaller than a week earlier. The biggest movements this week are also occurring in the liquid segment.
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There, the price for skimmed milk concentrate still fell by almost 4%, due to a generous supply of the product for this time of year. The main cause is and remains the stagnant milk powder market.
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Exporting skimmed milk powder remains very difficult, except in processed form. This puts downward pressure on prices. Prices for ex-factory and fresh products are still reasonably good, but there's also a lot of older product available, and therefore there's still a bit of a squeeze on the market. Given this situation, it's remarkable, in retrospect, that the price for concentrate reached a peak for this year two weeks ago. The price for milk powder production was prohibitive, and it was also quite expensive for cheese production, for example.
Since then, the concentrate price has taken several sharp drops.
DCA's mozzarella quotation is the only cheese to show a very slight increase this week, reaching €4.090 per tonne. However, producers are sometimes seeing the sales price drop significantly below €4.000, and sometimes even below €3.900. Incidentally, the price for foil cheese is also falling to levels of barely €4.050 per tonne. The quotation for natural cheese has been weaker than before in recent weeks, but otherwise relatively flat.
Overall, less cheese is being produced. This means that the price for whey concentrate is dropping slightly, but still remaining relatively stable.
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The higher whey derivatives made from it remain well priced.