Milch News, 11/16/2023

Milk deliveries in Germany continue to move towards their annual low. According to preliminary calculations, around 0.3 percent less milk was served in the 44th calendar week than in the previous week. At the same time, around 1.3% less milk was delivered than in the same week last year. Overall, however, around 1.8% more raw materials were delivered in the first 44 calendar weeks of the year so far than in the same period last year. Raw material prices for cream and skimmed milk concentrate remain firm. Liquid skimmed milk in particular is increasingly in demand from Italy. Spot market milk is 1.8 cents/kg firmer in a weekly comparison at 44.5 cents/kg. Fixed spot market prices are also evident in the Netherlands and Italy. Increasing demand and increasing orders are also currently being registered for molded butter . Both in comparison to the level of the previous weeks and to the same week last year, food retailers in particular are demanding more butter from manufacturers. The prices in Kempten increased significantly for the second time in a row. Consumer prices have also increased. On average, the 250 gram packet costs 1.59 euros.At the same time, branded products were sometimes offered cheaper with promotional prices. The prices for block butter also rose and increased by an average of 0.35 euros per kilogram. However, the volumes traded remain manageable overall. Inventories are decreasing significantly and fresh production is still limited due to the declining milk quantity, but there are reports of sufficient availability of block butter, which is still causing many buyers to act cautiously. With last week's price increase, German and European butter is becoming less competitive overall on the world market. After the butter prices on the EEX initially started the week somewhat weaker, a direct weekly comparison now shows firmer trends again. In particular, the later dates from April 2024 increased in price. The butter index determined by EEX increased significantly for the second time in a row and rose by 197 euros/t to 5,190 euros/t. There are few changes to the fundamental framework conditions for cheese .Demand remains at a high level. Even though dairies have recently channeled a little more milk into the production of cheese, the availability of goods tends to remain scarce. Not all additional requests can be addressed on time. Due to the limited quantities of cheese, deals of a short-term nature are only being concluded sporadically; more deals are being made for the first quarter of 2024. The price quotations for block goods in Hanover increased yesterday at the lower end, while prices for bread goods increased slightly at the upper end. In addition to Gouda and Edam, Emmental cheese is also in high demand. In the export business there are increasing discussions with buyers from Asia, but there is no agreement on prices. The prices for food-grade skimmed milk powder increased slightly yesterday in Kempten. At the upper end of the trading range it went northwards around 70 euros. Demand remains manageable, which is why manufacturers are continuing to produce on sight due to the high concentrate prices. The stocks have mostly been reduced.Discussions for new contracts will increasingly take place from the first quarter of 2024, but providers and buyers often still have a price difference. Domestic goods are hardly competitive on the world market, which is why export demand has calmed down significantly. The price quotations for feed qualities for skimmed milk powder are stable despite low demand. Whole milk powder is also only traded to a manageable extent in the middle of the month. Production is mainly limited to orders, but prices were raised by 80 euros/t in an overall friendly environment and are in a trading range between 3,680 and 3,780 euros per ton. Whey powder continues to be quoted, and prices for both food grades and animal feed products remain stable. Demand has recently declined somewhat. There has been little whey powder traded on the EEX recently; prices there have not changed over the week. On the other hand, skimmed milk contracts increased slightly across all delivery times.