Milch News, 06/May/2025

At the turn of the month, the milk market was again in slight decline. Following an upturn in mid-May, milk deliveries fell by 0.3% in the 21st calendar week compared to the previous week. This means that milk volumes are still 1.8% below the previous year's level - both in the week in question and cumulatively since the beginning of the year. The seasonal peak thus appears to have been exceeded, with significant declines already being recorded in some regions, while volumes have remained stable elsewhere. The price of spot milk also increased slightly: in Germany, the average price was 44.60 cents/kg, which corresponds to a weekly increase of 1.2 cents.

At the beginning of June, the butter market was stable with slightly firmer trends. Demand for packaged goods remained high for seasonal reasons, driven by the asparagus season and upcoming public holidays. The situation was similar for molded butter, although some buyers were somewhat more reluctant to conclude new contracts compared to the previous week due to current price negotiations. Molded butter continued to be quoted at a range of €7.40-7.80/kg on the South German Butter and Cheese Exchange in Kempten, while block butter was quoted at €7.30-7.60/kg, as in the previous week. Long-term supply contracts continued to play an important role, particularly with a view to the third quarter. Many market participants secured volumes early, as raw material volumes are expected to fall further. Futures prices were also stable to friendly: on the EEX, the average price for butter futures (June 2025 to February 2026) rose to €7,369 per tonne. In an international comparison, however, European goods remained less competitive in terms of price - the GlobalDairyTrade tender average was the equivalent of € 6,840 per tonne.

The market for semi-hard cheese remained balanced at the beginning of June. Demand was stable and could be met with the available supply. The upcoming public holidays and the upcoming summer could lead to increased demand, particularly in the food service industry. The industry purchased agreed quantities as planned, while exports remained at the level of previous weeks. Stock levels remained low, meaning that most of the goods entered the market fresh.

The market for food-grade skimmed milk powder remained calm at the beginning of June. New business was mainly limited to short-term delivery dates. Prices remained stable to slightly firmer: the Süddeutsche Börse in Kempten quoted 2,400-2,470 €/t, which represented an increase of 30 € at the lower end. Futures prices also rose slightly: the EEX recorded an average of €2,556/t for June 2025 to February 2026. This means that futures for many delivery months are above the current spot market level. Global benchmark prices, on the other hand, fell slightly. The situation for whole milk powder was calm, although international competition has recently become more difficult due to falling world market prices. Local prices were significantly higher than those in New Zealand, which had already fallen by 3.7% in June. There has been little change on the whey powder market recently. Due to intensive cheese production, there was still plenty of product available. While demand for processed products remained stable, buying interest in whey powder for food purposes declined slightly. Price levels remained unchanged.