European Dairy Market: SMP and SMC Prices Rise, Butter and WPC80 Prices Fall Again [Issue 323 of the Foodcom DAIRY Newsletter]

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Mid-October brings further increases in SMP prices and declines in butter prices. WMP remains close to previous levels, and skim milk concentrate (SMC) has also risen in price. Spot prices for raw milk have also risen in parts of Western Europe.

Cheese prices are holding up better. Gouda and Mozzarella have stabilized after earlier declines; Cheddar remains one of the stronger performers on the European market; and Emmental is priced similarly to before. In the protein segment, the most significant changes involve WPC80, whose prices have once again fallen sharply. WPI, MPC85, and whey permeate saw much smaller changes.

Milk Powder

Whole milk powder (WMP) is being offered in Europe in the range of 3,950–4,000 EUR/MT. Prices remain close to previous levels, and no clear movement outside the current range is evident.

Skim milk powder (SMP) for food use costs 3,650–3,750 EUR/MT in Europe, while feed-grade SMP is priced at 3,600–3,700 EUR/MT. Forecasts for Q4 range from 3,650 to 3,900 EUR/MT. Prices for both SMP categories have risen, and they remain at strong levels.

Cheese

Gouda is being offered in Europe in the range of 3,550–3,650 EUR/MT, while projections for Q4 are around 3,600–3,700 EUR/MT. After a dip in late September, prices have stabilized, and buyers are returning to the market at current levels. Trading remains quiet, but additional production is finding buyers without much difficulty.

Edam is priced at 3,550–3,600 EUR/MT.

Cheddar curd is offered in Europe in the range of 3,850–3,950 EUR/MT, and Q4 indications fall within the same range. Cheddar continues to hold up better than much of the European cheese market, and its availability is more limited than that of Gouda or Mozzarella. Isolated lower-priced offers are appearing, but for now they remain the exception.

Mozzarella is priced at 3,400–3,500 EUR/MT in Europe, while Q4 indications fall within the 3,450–3,550 EUR/MT range. Following a recent decline, the lower price limit has risen again, and mozzarella is holding up better than expected. Production continues at a steady pace, though weak export opportunities pose a risk of further price weakness.

Grating-grade Emmental is being offered in Europe in the range of 3,650–3,700 EUR/MT. Prices have remained virtually unchanged, and demand is stable. Most buyers have already secured their needs for the rest of the year. Availability on the spot market has decreased slightly, but there is still enough product to limit significant price increases.

Fats

Butter is being offered in Europe in the range of 3,600–3,700 EUR/MT, while Q4 indications stand at approximately 3,600–3,750 EUR/MT. Prices have fallen again, and transactions on both the spot market and for Q4 are taking place near the lower ends of recent price ranges.

Liquids

Cream is being offered in Western Europe in the range of 4,500–4,600 EUR/MT. Most prices in the region are centered around these levels.

Spot raw milk in Western Europe costs approximately 42–46 EUR/100 kg. The price spread in the region remains quite wide.

Skim milk concentrate (SMC) is being offered in Western Europe in the range of 3,450–3,500 EUR/MT. Prices have risen, and several recent quotes fall within this range.

Whey concentrate is priced at 1,500–1,600 EUR/MT. Prices are firm and have not changed significantly.

Whey and Proteins

Sweet whey powder (SWP) for food-grade use is offered in Europe in the range of 2,000–2,050 EUR/MT, while feed-grade material costs 1,650–1,700 EUR/MT. In Eastern Europe, SWP for food-grade use is cheaper, trading at around 1,900–1,950 EUR/MT. Prices for food-grade SWP are stable, while feed-grade SWP has become slightly cheaper.

WPC80 Instant is offered in Europe in the range of 18,000–18,500 EUR/MT, while in Eastern Europe prices are higher, at around 18,500–19,000 EUR/MT. WPC80 prices have fallen sharply again, and the difference between price levels in the two regions is now significantly smaller.

WPI Instant is priced at 28,000–28,200 EUR/MT in Europe. Across the broader market, prices remain near 28,000–28,400 EUR/MT, with much smaller fluctuations than those seen for WPC80.

MPC85 is offered in Europe at around 16,000 EUR/MT, with no major changes from previous figures.

Whey permeate for food use costs 1,050–1,100 EUR/MT in Europe. Prices have changed only slightly.

Food-grade lactose is offered in Europe in the range of 1,650–1,700 EUR/MT. Prices are currently closer to the lower end of this range.