Milk News, 04.04.2025

The seasonal increase in milk deliveries in Germany continued in the second half of March. Nevertheless, the volume of raw materials remained well below the previous year's level. Even though, according to the Central Milk Market Reporting (ZMB), around 0.4% more milk was delivered in the 12th calendar week than in the previous week, the volume was still 2.5% below the previous year's figure. This means that a total of 2.2% less milk has been recorded since the beginning of the year.

The raw materials market varied from region to region at the turn of the month. While in some regions the first impetus from the upcoming Easter business was already noticeable, elsewhere it was still a long time coming. Overall, demand for fat-containing products remained high. Despite volatile market activity with short-term weaker price trends at the beginning of the week, prices rose again in the current reporting week amid brisk demand.

Due to the weak price trend for skimmed milk powder, less was dried recently and demand remained subdued. At the same time, the high demand for cream led to increased skimming, which increased the supply of skimmed milk and skimmed milk concentrate. However, there was no selling pressure due to the overall limited supply of raw materials. As a result, prices remained stable or fell slightly. Skimmed milk concentrate was traded at an average of around € 2.0/kg dry matter, while the price of skimmed milk fell slightly by 1 cent to 16 cents/kg compared to the previous week.

The spot market prices for raw milk developed differently at the end of the month. According to the ife Institute, the average price in Germany in the 13th calendar week was 45.2 cents/kg - a fall of 0.6 cents compared to the previous week. The spot price in the Netherlands also fell slightly by 0.5 cents. In northern Italy, however, the price level remained stable.