(AMI) - the German dairy market is launched in limited volume of raw material at higher price levels in the year 2017. After the rally last year were the prices of dairy products, such as the producer prices in Germany at the beginning of the year significantly higher than the lows from 2016, and on all marketing levels over the same period last year. The situation on the milk market was is altogether more stable than usual otherwise at this time of the year in the first few months. The milk production was throttled, so the seasonal rising delivery quantities could be processed easily. The sum of the first three months of this year the dairy delivery in Germany were lower by 3.7% as in the same period of the previous year. Also partly buoyant trends showed, while normal sales to the internal market, exporting to third countries.
As a result, the market in the first third of the year was total balanced, product prices were however very inconsistently. The fat side, especially butter, showed extensive needs priced very stable. However, resulted in the course of an ongoing sluggish demand and large volumes of inventory goods for milk powder price corrections. Producer prices were more easily in the upward trend, however, at the beginning of the year and the longer-term financial statements between dairies and commercial for butter, cheese and fresh dairy are likely to stabilize 2017 in the first half of the course.
ZMP Live Expert Opinion
The German dairy market is launched in limited volume of raw material at higher price levels in the year 2017. For the remainder of the fundamentals at the start of the second quarter suggest quite a still fairly balanced market with higher revenue opportunities than in the previous year. With regard to possible increases in production, the market should prove to be however as limited receptive. With increasing amount of milk increases the risk of renewed price declines so if the demand not to the same extent grows as production is increased.