This is our summary of the week 35 on the European dairy market divided into 4 main categories.
Prices for SMP are going up with a strong demand from the Middle East. The persistently very high price of the raw milk maintains the upward trend in powder prices. Many dairies do not dry their milk, because the sale of raw material is more beneficial. SMP is offered in the range of 2.60 – 2.64 EUR/kg EXW DE/FR/NL/PL.
Prices for FCMP are steady, but as inventories are tight, this situation might change soon. FCMP offered in the range of 3.15 – 3.20 EUR/kg EXW IE/FR/DE/PL. SWP is still increasing, even though the export demand is not strong. A lot of end customers also come back with inquiries about the WPC 80 for Q4-2021. Fewer and fewer offers from producers.
The high price of milk increased the prices of cheese. Gouda / Edam is offered in limited quantities in the region of 3.20 – 3.25 EUR/kg EXW DE/NL. Cheddar is offered in the area of EUR 3.55/kg EXW UK/IE. Last week, we also saw increased interest in Cagliata.
The demand for butter is picking up. Extremely high price of the raw material – cream – means that the cost of producing fresh butter in a block is about 4.45 EUR/kg EXW PL. On the flip side, frozen butter in blocks is offered in the range of 4.15 – 4.25 EUR/kg EXW PL. AMF/Butteroil is also very popular and is offered above 5.10 EUR/kg.
Cream is offered in Poland in the range of 5.45 – 5.50 EUR/kg DAP PL. The price of cream has increased by around 20% in recent weeks. Small amounts of raw milk available, as seasonal decline is already happening.