Milch News, 01/25/2024

Despite the usual seasonal increase, milk volumes did not increase further in week 2. According to the ZMB, around 1.4% fewer raw materials were delivered to the dairies than the week before. The recent onset of winter in many regions in particular slowed down production output on many farms. Compared to the result from the previous year, around 3% less raw materials were delivered. On the spot market, the price for raw milk was 37.6 cents per kg (ife Institute), an increase of 1.7 cents compared to the previous week's level. The raw material markets appeared largely balanced. The fat side developed somewhat weaker, whereas the protein side was able to stabilize at the same level. On the butter market, the demand for molded butter is not uniform. Demand for packaged butter increased slightly in some regions, but demand was weaker in other parts of the country. Prices have remained largely stable over the past week. The dairies' sales prices were at the previous week's level. The butter and cheese exchange also updated the prices for packaged butter unchanged from the previous week. The retail price for a 250 gram packet was 1.69 euros. When it comes to block butter, the fundamental data has changed little. Demand and supply were balanced. Buyers had to accept firmer prices, especially for short-term deliveries. Only a few deals were made for the later delivery dates; market participants were taking a wait-and-see approach. There has been little change in the quiet trade on the market for skimmed milk powder . The quantities offered were well received by the market due to the scarcer availability of raw milk. Looking at the previous year, inventories in the factories are significantly lower. There was also a lack of impetus from the European environment; only a few deals were concluded in the past few days. A similar picture emerged in trade with third countries. Buying interest was also weak due to global competition and price pressure. Market participants also report that the problems in the Red Sea are now causing delays and problems with logistics. This creates additional reluctance among buyers. In Kempten, the price fell by 30 euros to a range of 2.480 euros to 2,620 euros/ton. Contract prices also had to fall on the EEX, where the average price for skimmed milk powder was 2,621 euros per ton. Sales, on the other hand, increased slightly by 73 contracts compared to the previous week. The cheese market remains stable. As in the previous week, orders from food retailers were at a fairly high level. However, new deals were rarely recorded. The calls from industry and the GM sector were largely limited to contract goods. Trade in export business was also at a satisfactory level. As on the powder markets, trade was negatively affected by the conflicts in the Red Sea. There was very little activity here. In Kempten the range for block goods was increased by 5 cents per kg to 4.05 to 4.25 euros/kg.