Milk News, 08.05.2025

Milk deliveries increased slightly again at the end of April. The ZMB recorded an increase of 0.4% compared to the previous week. This reduced the gap to the previous year to 0.6%, which is also due to the weaker development in the same period last year. Overall, delivery volumes for the first 17 weeks were 2.0% below the previous year's figure. Meanwhile, spot market prices for raw milk continued to fall. The ife Institute put the nationwide average at 42.70 Ct/kg - a fall of 1.20 Ct. Prices also fell by around 1 ct in the Netherlands, while they remained stable to slightly weaker in northern Italy.

The market for packaged butter was stable in the first half of May, although momentum slowed slightly after the Easter holidays. The reduced number of working days and the cool, unsettled weather slowed down typical spring impulses such as the barbecue and asparagus season. With better weather, manufacturers are expecting demand to pick up. Prices on the exchange in Kempten were between €7.40 and €7.60/kg on 07.05.25 - 20 cents less at the upper end compared to the previous week. The selling prices for molded butter also remained largely constant. In retail, a 250g pack of branded butter still costs €1.99, 20 cents more than last year. Block butter, on the other hand, remains in higher demand in the short term, while there is restraint for longer maturities - mainly due to unclear price and milk volume developments. On the EEX, the average price for butter futures fell to €7,201/t in the past calendar week - a drop of €118. The trading volume decreased noticeably. Demand for exports is subdued. Within the EU, there is a normal seasonal level, while outside the EU there is a lack of impetus due to price disadvantages - including cheaper competition from the USA and New Zealand.

The cheese market remained stable at the beginning of May. Demand from food retailers was very lively in some cases, but somewhat weaker than expected in others. Overall, sales figures remained high. Inquiries also came from the bulk consumer sector, although the changeable weather has so far put the brakes on the hoped-for impetus. The industry took delivery of goods as agreed and European exports remained constant. There was also continued interest from third countries, particularly from Asia. However, market participants reported that export business has not yet fully recovered from the effects of the foot-and-mouth epidemic in Germany. Exports to Australia and Mexico, for example, are still not running smoothly. The high volume of milk was mainly used for cheese production. However, stocks remained low and the goods were processed quickly. The price level remained stable. In the negotiations for the coming months, slight price increases were achieved in some cases, which was also reflected in individual price increases in the food retail sector.

The market for skimmed milk powder was calm and balanced at the beginning of May, which was also helped by the short public holiday week. Nevertheless, there were repeated inquiries, some of which led to deals. However, the overall trading volume remained limited. Buyers showed interest in both short-term and longer-term deliveries; in the latter case, many deals fell through due to differing price expectations. Trade with third countries continued to suffer from the strong euro, while US producers were able to offer their goods at lower prices. The focus is currently on a tender in North Africa. In Germany, lower prices for skimmed milk concentrate made purchasing for drying more profitable, which brought new suppliers onto the market. The price level for food products stabilized after the declines in April. The market for feed-grade skimmed milk powder stagnated at the beginning of the month. Although deliveries for the second half of the year were discussed, no significant contracts were concluded. Prices for skimmed milk powder rose slightly on the EEX in Leipzig. The average price for delivery dates from May 2025 to January 2026 was €2,454 per tonne - an increase of €6 compared to the previous week. Despite the public holiday, trading activity increased significantly - with a week-on-week rise of 705 tons. International prices for skimmed milk powder also rose slightly. At GlobalDairyTrade in New Zealand, the price index rose by 0.5% at the beginning of May. The average price across all traded delivery periods was the equivalent of € 2,497/t on 06.05.25.