Summary of the week 42 (dairy)
This is our summary of the week 42 on the European dairy market divided into 4 main categories.
Some offers for SMP coming directly from manufacturers already exceed the level of 3.10 EUR/kg EXW IE/UK/DE for Q1-2022. It seems that dairies have a problem with the availability of milk and are not willing to offer more product, especially for collection later this year. Prices on the spot range from 2.95 to 3.00 EUR/kg EXW FR/DE/PL.FCMP is offered around 3.30 – 3.35 EUR/kg EXW, but the trend is not as strong as in skim milk (SMP). After the increase in GDT, lactose is offered above 1.02 EUR/kg EXW DE/PL, while permeate is offered in a wide range of 0.67-0.73 EUR/kg EXW EU.
High prices for Dutch and Swiss type cheese persist. You have to pay 4.00 – 4.05 EUR/kg EXW DE/NL for Gouda. Recently we heard that prices for Q1-2022 are in the area of 3.50 – 3.60 EUR/kg, but we already saw transactions above 4 EUR/kg. In Poland prices are at the level of 4.20-4.30 EUR/kg.
Cagliata is increasing as well and can be bought at 3.90 EUR/kg. High cheese prices have also affected processed cheese producers, where the raw material does not match the prices of the final product. There is not much cheese for melting.
Butter is also not slowing down and still many people have not made their final purchases. Fresh butter is hard to come by, and its price is still above 5.50 EUR/kg EXW. Market participants are holding their breath to see the results of German discounters tender. Frozen butter is offered above 5.20 EUR/kg EXW EU. Significant demand also for Anhydrous Milk Fat (AMF), where some producers expect to see contracts close to 7 EUR/kg soon.
Cream does not slow down and is offered around 6.70 – 6.75 EUR/kg EXW PL/DE/NL/FR. The price of producing butter directly from such cream is over 5.50 EUR/kg EXW. SMC stays strong, and so does raw milk. We can clearly see that there is less raw material on the market and the Christmas production is just stating. The prices are still really high.