- On the Dutch market, prices for milk powder for animal feed have risen, indicating a future increase in the value of this product.
- An upward trend in prices can be observed on the butter market, mainly because Easter is approaching.
- Milk imports to China have fallen by 12% to 2.6 million tons in 2023 due to increased domestic production and weaker consumer demand, opening up new export opportunities for high-quality products.
Hello Partners!
Welcome back to our Newsletter!
Enter the dairy market, where every change creates a profit opportunity. Skimmed milk powder prices are slowly rising, but the cheese and butter markets remain stable, creating new business opportunities. Despite challenges such as farmer protests in France and trade negotiations in Ukraine, an informed approach is important. Together with us, you will be able to effectively capitalize on the dynamic market trends and succeed in the dairy industry. Register now to stay up to date and ahead of the competition.
Let’s take a look at what else is happening in the dairy market!
Products of the Week
Skimmed Milk Powder
On the market for Skimmed Milk Powder for animal feed in the Netherlands, a price of 2450-2500 EUR/MT is achieved for immediate deliveries. For Q2 deliveries, the price rises to around 2550-2600 EUR/MT. Rising prices indicate that the value of skimmed milk powder on the markets will increase in the future.
SMP prices for the food sector vary by region and source. The result of the Soummam tender in Algeria was 2630 EUR/MT (CFR), while in the European Union prices for fresh material ranged from 2480 to 2580 EUR/MT (FCA). Availability is good across Europe, and older stock can be found on the market at a price of about 1400-1450 EUR/MT.
Cheese
The cheese market is relatively calm and stable. Despite the lack of significant changes in sales, the general market sentiment is positive, which indicates an optimistic outlook for the segment. Prices for Mozzarella are showing a slight upward trend with slight fluctuations in recent weeks, indicating a certain volatility but overall positive market dynamics for this product. In Germany, prices for two popular cheeses, Gouda and Edam, have remained unchanged over the last three weeks at 4050 EUR/MT, while in Poland prices are below 4000 EUR/MT. In addition, Cagliata is under noticeable pressure at 3850-3900EUR/MT FCA.
Fats
The Butter market is characterized by fluctuating prices, albeit with an upward trend, particularly in view of Easter and the upcoming asparagus season. Retail prices in Germany rose by around 200 EUR/MT and reached 5900-6000 EUR/MT. The Polish manufacturers quote 5700 EUR/MT for prompt and 5800 EUR/MT for April.
AMF and Butteroil prices were stable last week.
Liquids
Prices for Cream are moving towards 7000 EUR/MT, which is still below the price equivalent of butter. The good demand, underlined by the decision of some factories to switch production to butter, indicates a strong position of this product on the market. We are also seeing increased demand ahead of Easter.
On the Skimmed Milk Concentrate market, prices in Germany have fallen to 1900-1950 EUR/MT FCA. In France and the UK, however, prices remain at a similar level to last week.
Due to the warm weather across Europe, we are currently experiencing an increase in the availability of Milk.
Whey Powder
On the SWP market, we are observing price stabilization with a tendency towards a slight decline, settling in the range of 780-810 EUR/MT FCA in the central EU. The price situation indicates relative stability in this segment of the dairy market, even if continuous monitoring is necessary in order to react to possible changes.
For SWC, we are seeing increased availability across the EU, which has led to a drop in prices to EUR 420-450/MT FCA.
What else?
Imports of dairy products to China fell by 12% to a total of 2.6 million tons in 2023 due to increased domestic production and weaker consumer demand. Chinese milk production increased by 4.6% to 41 million tons. New Zealand is still the largest exporter to China. Looking ahead, experts are forecasting slower growth in consumption but rising demand for high-quality dairy products such as cheese and butter, which offers export opportunities for countries such as the UK.
French farmers may extend their protests and blockades in the coming weeks to pressure the government to keep its promises of support, announced Arnaud Rousseau, head of France’s largest agricultural union, the FNSEA. Farmers are concerned about strict environmental regulations, competition from cheap imports and financial difficulties. Rousseau made the statement ahead of a meeting between President Emmanuel Macron and representatives of farmers’ associations. The situation remains tense. Despite earlier promises of financial aid, there are ongoing protests in various regions.
A senior Ukrainian official is calling for long-term access to EU markets for Ukrainian food producers instead of annual extensions. Deputy Minister Markiyan Dmytrasevych is seeking a permanent abolition of tariffs and quotas or a three-year extension of the current suspension. Despite the protests of EU farmers, Ukrainian exports make up only a small part of EU consumption, Dmytrasevych notes.
