Milk News, 02.05.2025

In the 16th calendar week, milk deliveries in Germany rose again slightly - by 0.9% compared to the previous week, according to the ZMB. This reduced the gap to the previous year's level to 1.4%. Since the beginning of the year, the total volume is still 2.1% below the previous year's figure. The market for skimmed milk powder remained subdued after Easter. New contracts were rare, as many customers had already made provisions for the second quarter. Manufacturers concentrated on existing contracts, while exports were under pressure due to the strong euro and favorable US offers. Due to unclear market prospects, contracts for the second half of the year were rare. Prices developed unevenly and trended slightly downwards overall. Prices fell on the EEX: The average for April to December was EUR 2,448/t, EUR 19 less than before. The trading volume fell to 1,460 tons, significantly less than in the previous week. The feed market was also quiet. A low level of buying interest led to little new business and slightly falling prices. The Kempten quotation for skimmed milk powder in feed quality was lowered to between EUR 2,280 and 2,310/t - a drop of EUR 10. At the end of the month, the market for packaged butter was in its usual post-easter calm. Although sales volumes were down on the strong pre-Easter days, manufacturers continued to assess demand from food retailers (LEH) as positive. The asparagus season is expected to provide additional impetus in the coming weeks. Prices remained stable: on April 30, 2025, the Kempten Stock Exchange quoted shaped butter unchanged at between EUR 7.40 and 7.80/kg. Price negotiations for new supply contracts from May onwards were largely concluded. The weaker price level for block butter in April may have played a role in this. In the food retail sector, the price for a 250-gram pack of German brand butter in the entry-level segment remained at EUR 1.99 - 24 cents more than in the same month last year. The market for block butter remained divided: While there was still short-term demand for the second quarter, there was a reluctance to conclude long-term deals. Differing price expectations between buyers and sellers often prevented agreements from being reached. The supply around the seasonal milk peak was sufficient to cover current demand. Prices remained largely stable. Futures for block butter rose slightly on the EEX in Leipzig: the average price for April to December 2025 rose by EUR 28 to EUR 7,319/t in the 17th calendar week. While expectations for April and May were above the spot market level, prices for the following months were within the usual range. Trading volumes also picked up after Easter: At 1,595 tons (319 contracts), noticeably more was traded than in the previous week. At the end of the month, the German cheese market remained stable and balanced. Despite the quieter holiday weeks, demand from food retailers, industry and the food service sector remained constant. With increasing sunshine, manufacturers in the food service sector are expecting additional sales momentum. Export demand also remained typical for the season, with the changeable weather in Italy causing a slight dip. Third-country customers also reported further demand. Supply kept pace with the stable demand. Shortly before the milk peak, raw material availability was good, which enabled brisk production. Stock levels remained low and the goods were predominantly fresh. There was no pressure to sell. Prices remained at the previous week's level: in the 18th calendar week, bread was quoted at 4.80 to 5.00 EUR/kg in Hanover and block goods at 4.50 to 4.70 EUR/kg.