Milk deliveries remained subdued at the end of February. Despite a slight increase compared to the previous week, the volume of raw materials remained below the previous year's level. Since the beginning of the year, less milk has been recorded across the board, meaning that in the first eight calendar weeks, a shortfall of 2.2% has built up compared to the previous year. Winter temperatures may have contributed to this development. At the same time, persistently strong demand and limited supply led to rising prices on the commodity markets. A firm price level was recorded for industrial cream in particular, while spot milk prices recently stabilized following previous declines.
Demand for butter in the food retail sector remained at a high level at the beginning of March. At the same time, both dairy selling prices and consumer prices fell. At the end of February, the first retailers reduced the price of German branded butter in the entry-level price segment from EUR 2.19 to EUR 1.99 per 250-gram packet. This was the first time since September 2024 that prices had fallen below the EUR 2 mark. In contrast, the market for block butter remained characterized by brisk demand and limited supply. Short-term deliveries continued to be traded at higher prices. In Kempten, prices for block butter were raised by up to 30 cents/kg. Prices on the European Energy Exchange (EEX) in Leipzig also rose across all delivery periods. The average price for the months of March to November 2025 rose by EUR 317 to EUR 7,314/t.
The sliced cheese market saw continued high demand in March, particularly from food retailers and southern Europe, which is linked to the upcoming vacation season. Stocks in ripening warehouses remained low and many producers had already distributed their goods for the coming weeks, meaning that orders placed at short notice could often not be fulfilled. Prices remained stable, with slight increases, and some producers took a wait-and-see approach due to the uncertain milk supply.
The markets for milk and whey powder remained largely stable at the beginning of March. While demand for food-grade skimmed milk powder was quieter, demand for food-grade whey powder remained robust. The start of Ramadan dampened trading activity, while uncertainties about future trading conditions due to possible US import tariffs on agricultural products led to restraint. In Kempten, prices for skimmed milk powder remained unchanged at between EUR 2,430 and EUR 2,550 per tonne. On the EEX in Leipzig, prices for skimmed milk powder fell slightly and were last quoted at EUR 2,617/t, a decrease of EUR 42 compared to the previous week. Trading volumes increased significantly compared to the previous week, indicating increased market activity.
ZMP Live Expert Opinion
Milk deliveries remained subdued at the end of February, down 2.2% on the previous year. Demand for butter and cheese remained stable, while the powder markets remained largely unchanged. Demand is likely to remain high due to seasonal factors, but uncertainties such as possible import tariffs and fluctuating milk deliveries could lead to inconsistent price trends.
You see historical data because you're not logged in or not a ZMP Live+ member. Get your information advantage now!
