Summary of the week 4 (dairy)

This is our summary of the week 4 on the European dairy market divided into 4 main categories.

 

Powders

SMP is offered 3.55 – 3.65 EUR/kg EXW EU depending on the date of receipt. The results of the ONIL-Algeria tender have only strengthened this price. BMP is offered at 3.30 – 3.35 EUR/kg EXW EU.

Whole milk powder (FCMP) prices went up for another week, with some producers offering prices at the level of 4.45 EUR/kg and higher.

SWP is building its price for another week and some producers are already offering this commodity at 1400 EUR/MT EXW EU. Prices of WPC 35/60/80 are still high, demand is not decreasing and it does not look like it will decrease. Generally producers has low availability of product.

Cheese

Although cheese producers are still quoting Dutch cheeses 4.15 EUR/kg and above, sometimes there is a chance to find a bargain in the market and a cheese at a lower price.

Prices for mozzarella and Cagliata strengthened slightly last week and there has been increased interest for these cheeses as well as for cheddar.

In Q2 there is a chance that prices may slow down slightly, but there are too many unknowns to bet on it 100%. The demand for cheese for grating and melting is not decreasing – the availability of this raw material is worse.

Fats

It is difficult to find prices on the market below 5.60 – 5.65 EUR/kg EXW EN and Western production butter is offered around 5.75 – 5.80EUR/kg EXW EU.

Overall, butter and fat prices firmed up last week. AMF is still stable around 7.4 EUR/kg. It seems that after two weeks buyers are getting back to work and realize that they do not have much raw material in stock for production.

German retail butter tender has finished slightly below 5.80 EUR/kg, and was contracted for one month.

Liquids

Total milk volumes in Europe are still below 2021 levels, there is a slight upward trend in some regions but the 2021 levels will be hard to catch up with.

Cream prices rebounded slightly last week across Europe, with the difference between the beginning and end of the week at around 100EUR/t.

Liquid milk spot prices are still very high, more dairies across Europe are raising their prices for farmers and the situation is not likely to change anytime soon.

SMC is climbing higher and spot prices have reached up to 3500 EUR/t. Milk volumes across Europe are still lower than expected, which could be another argument for not making any cuts.