Analysis milk
Dairy market slow to recover despite recovery
The dairy market is recovering somewhat this week, particularly in the liquid segment. However, things aren't going as well as in previous years. The pace of market recovery remains very slow. The fat market, in particular, is faltering, while the protein market is doing better, but still not very well.
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This is evident from the most recent DCA quotations. It is striking that the spot market for liquid dairy products in the Netherlands is weaker than in Germany. While milk prices in the south and east are approaching €20 per 100 kilos, and in some cases even reaching €25 per 100 kilos, prices in northwestern Germany remain around €15 to €16 per 100 kilos and at €12,50 per 100 kilos in the Netherlands.
Skimmed milk concentrate (SMC) also fetches considerably less in the Netherlands than in Germany, although prices are rising in both countries (+92%). In the Netherlands, the price has remained between €500 and €600 per tonne, while in Germany, the price has risen to €1.000 per tonne and higher.
The milk fat market is decidedly weak. The protein market is slightly better, but not convincingly so.
Prices for skimmed milk powder are slightly higher, while whole milk powder is trading slightly weaker. The picture for whey powders is mixed, but the whey market as a whole remains quite stable. This is because high WPCs, particularly WPC80, remain in extremely high demand. WPC80 still fetches over €12.000 per tonne.
Among cheeses, Gouda and Edam foil cheeses, as well as mozzarella, continue to show a cautious upward trend, while cheddar is trading lower, and natural cheese also continues to face price pressure. Here too, there are no strong upward or downward movements. Where prices are rising, the market is often fragile, while falling prices don't yet point to an unstoppable trend. The market remains uncertain, with relatively little conviction and against the backdrop of a still-sizable milk supply. With a slight increase this week, the DCA Cheese Index does provide a good picture of the situation.