European dairy market: stable SMP and MPC85, declines in butter and WPC80 [Issue 320 of the Foodcom DAIRY Newsletter]

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The end of September is bringing increasingly wide disparities among the various segments of the European dairy market. Milk proteins remain strong, while fats continue to face pressure. SMP is performing well, limited availability is supporting European WMP, and butter buyers are in no hurry to secure additional volumes.

Trends in the whey market are even more varied. WPC80 has dropped significantly in price, while WPI is correcting much more slowly. MPC85 remains one of the stronger protein segments, and price changes for SWP, whey permeate, and lactose are much smaller.

Milk Powder

Whole milk powder (WMP) is being offered in Europe in the range of 3,800–3,850 EUR/MT. Seasonally lower milk supply has limited European production and product availability. More competitive offers on the international market are hampering exports, but limited availability should continue to support the European market.

Skim milk powder (SMP) for food use is priced at 3,250–3,300 EUR/MT, while feed-grade SMP is offered in the range of 3,200–3,250 EUR/MT. Export interest has risen again as buyers secure their remaining needs for Q4 and early 2027. Strong demand for milk proteins is supporting the market, although at current European price levels, room for further increases is more limited.

SMP is benefiting directly from strong demand for proteins, while WMP’s position is primarily supported by lower product availability in Europe.

Cheese

Gouda is being offered in Europe in the range of 3,450–3,500 EUR/MT, and Q4 indications are around 3,450–3,550 EUR/MT. The market is stable with slight downward pressure, as buyers are taking a cautious approach to further purchases.

Edam is priced at 3,400–3,500 EUR/MT.

Cheddar cheese is offered in Europe in the range of 3,750–3,800 EUR/MT, while Q4 indications are around 3,700–3,800 EUR/MT. Availability is relatively limited, and prices remain firm. However, current price levels are causing buyers to be cautious about securing their needs too far in advance.

Mozzarella is priced at 3,450–3,500 EUR/MT in Europe, while indications for Q4 range from 3,400 to 3,500 EUR/MT. Prices remain under slight pressure, as buyers are taking a more cautious approach to purchases given the current supply situation.

Grating-grade Emmental is being offered in the range of 3,650–3,700 EUR/MT. The market is generally stable, and so far there is no clear catalyst that could set a new direction for prices.

Fats

Butter in Europe is being offered in the range of 3,850–3,900 EUR/MT, while Q4 indications are around 3,850–3,950 EUR/MT. Abundant global supply and accumulated inventories continue to put pressure on the market, and many buyers have already secured a significant portion of their needs.

Europe is faring better than some international markets. Current price levels continue to find some support, so a period of trading within a relatively narrow range seems more likely than another sharp downward move in the near term.

Liquids

Cream in Western Europe is being offered in the range of 4,700–4,750 EUR/MT. Prices have fallen again as availability has improved compared to the beginning of the month. Weaker cream prices are also limiting the potential for a more pronounced rebound in the butter market.

Spot raw milk in Western Europe is trading at around 41–43 EUR/100 kg. Prices have declined in parts of the region, and milk supply is higher than it was in early September.

Skim milk concentrate (SMC) is being offered in Western Europe in the range of 2,750–2,850 EUR/MT. Prices have moved lower in line with the general weakening of the liquid dairy market.

Whey concentrate in Europe costs 1,500–1,550 EUR/MT. The market maintains a strong price position, which stands in stark contrast to the much larger correction in WPC80.

Whey and Proteins

Sweet whey powder (SWP) for food use is offered in Europe in the range of 1,950–2,000 EUR/MT, while feed-grade material costs 1,650–1,700 EUR/MT. Demand remains strong, particularly in the feed segment, and some buyers are still securing supplies for Q4. As a result, SWP maintains its position despite the weaker situation for some other whey products.

WPC80 Instant is offered in Europe in the range of 22,000–22,500 EUR/MT. Purchasing activity has clearly weakened, as buyers are drawing down previously accumulated inventories and reevaluating their formulations following sharp price increases earlier in the year. Greater availability and increasingly competitive offers are putting pressure on prices, so the market may weaken further before buying interest returns more strongly.

WPI Instant is priced in Europe at 29,000–29,500 EUR/MT. Prices are also falling, but at a much slower pace than for WPC80. Availability on the spot market is lower, and in many applications, WPI is more difficult to substitute with another ingredient, which reduces the pressure to sell available volumes quickly.

MPC85 is being offered in Europe at around 15,300 EUR/MT. Most of the available volumes for Q4 are already contracted, and strong demand for milk proteins is supporting prices. The market may strengthen further, although the narrowing price differential relative to WPC80 could limit the potential for further gains over time.

Whey permeate for food use costs 1,050–1,100 EUR/MT in Europe. Lower offers are appearing on the market, but demand remains healthy, and the market is absorbing the large available supply. If purchasing activity continues, prices are expected to stabilize somewhat in Q4.

Food-grade lactose is being offered in Europe in the range of 1,650–1,700 EUR/MT. With the arrival of fall, demand related to standardization is weakening, which is why there is slight downward pressure on the market. However, purchasing interest remains sufficient to limit the risk of a more significant correction, so the situation currently appears stable with a slight downward trend.