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The market for dairy products is dynamic and is characterized by stability and subtle price shifts for the various products. While SMP and cheese maintain their price levels with minor fluctuations, there are notable price increases in the butter and cream segments. Similarly, prices for whey powder for animal feed remain stable, while sweet whey concentrate shows an adaptability to market demand. These nuances in price dynamics highlight the dairy industry’s ability to withstand market changes and require stakeholders to remain agile in their strategies to achieve optimal results.
Let’s take a look at what else is happening in the dairy market!
Products of the Week
Skimmed Milk Powder
The price for SMP (Skimmed Milk Powder) for feed in the Bulk DAP NL option is set at 2200 EUR/MT, with no further demand for April, but with higher prices announced for May-June and Q3. This reflects steady demand in the feed segment and potential price increase anticipations.
The price of SMP for the food industry remains stable, with weak signs of an increase and with offers in the range of 2250-2450 EUR/MT. This stability indicates a balance between supply and demand in the food segment.
Cheese
Cheese prices remain stable without significant market activity last week.
The Cheddar cheese market is characterized by stability with minor price fluctuations. The EU spot price for Cheddar cheese saw a slight correction, moving from 3950-4050 EUR/MT to a slightly narrower range of 3900-4000 EUR/MT. Cheddar from Australia and New Zealand saw an uptick, reaching 3975-4075 EUR/MT, reflecting global trends and likely tighter supplies.
Gouda and Mozzarella remain staples in the European cheese market. Gouda prices are holding steady. In contrast, Mozzarella, a key ingredient in many culinary delicacies, has shown resilience, with prices rebounding slightly to 3500-3550 EUR/MT on the spot market. This could be a sign of a recovery in demand or an adjustment in production levels.
Fats
Butter prices are rising, with current prices of 5800-5900 EUR/MT FCA in the EU, where the butter supplied is extremely fresh. The global price increase, particularly in Australia and New Zealand, to 6050-6150 EUR/MT, highlights the limited supply or increasing demand in certain regions.
Liquids
Cream prices have increased again, reaching 6750-6850 EUR/MT, with prices as high as 6900 EUR/MT FCA being quoted. This significant up in cream prices could be due to seasonal changes in milk production or an increase in demand for high-quality milk fats.
Skimmed milk concentrate is quoted in a price range of 1650-1750 EUR/MT FCA in Germany, with demand being quite good.
Spot prices for milk are rising slightly, but are still well below 40 EUR/100kg, which is well below the payouts for most farmers in the EU. This slow price correction could indicate a gradual adjustment of the market to current supply and demand conditions.
Whey powders
SWP (Sweet Whey Powder) for feed in the bulk DAP NL option shows price stability with prices hovering around 640 EUR/MT in spot transactions and expected to rise to 670 EUR/MT in May-June and even to 700-720 EUR/MT in Q3. This stability indicates a balance between supply and demand, although future price changes could reflect trends in feed production or shifts in consumer preferences.
The price level for Sweet Whey Concentrate remains at 400-500 EUR/MT FCA, with some spot transactions at lower prices. This price flexibility indicates varying demand in the market and potential opportunities for buyers looking for favorable purchasing terms.
What else?
Europe
Tesco is launching a voluntary scheme in partnership with NatWest Bank to help up to 1,500 of its farmers adopt more sustainable farming practices. The initiative, developed with the help of Tesco’s Sustainable Farming Groups for dairy, beef and lamb, offers financial support and access to preferred suppliers for the purchase of equipment such as solar panels and heat pumps at volume discounts. This move aims to remove the main barrier for farmers: the upfront investment required for green technologies. The collaboration is in line with efforts to decarbonize agriculture and contribute to the UK’s climate goals, and is an important step towards sustainability in the food industry.
North America
The US is closely monitoring outbreaks of H5N1 avian influenza, which has affected wild birds and poultry since early 2022 and recently spread to dairy cows. Cal-Maine, the largest egg producer in the US, shut down operations at its Texas facility and euthanized nearly 2 million hens after the flu was detected, which could significantly affect egg prices. The method of transmission of the flu remains unclear, but it is known that infected cows produce significantly less milk. The White House has convened a response team that includes the CDC, FDA and USDA to combat the spread of the flu. Although a farm worker in Texas has tested positive for H5N1, the CDC considers the risk to the public to be low. This is the second human case in the U.S. with no human-to-human transmission reported.
