Milk News, 10.04.2025

In March 2025, the milk market was generally calm. Milk deliveries in Germany rose slowly for seasonal reasons and remained below the previous year's level. According to the Central Milk Market Reporting (ZMB), an increase of just 0.3% was recorded in the 13th calendar week compared to the previous week. Compared to the previous year, the raw material volume was therefore still 2.0% lower. In the first quarter of 2025 as a whole, milk deliveries nationwide fell by 2.2% compared to the same period in the previous year.

This reduced availability of raw materials was reflected in large parts of the milk market. The raw material markets remained calm overall and were largely balanced. Despite the upcoming public holidays, surprisingly subdued demand was reported from many regions. The market for liquid cream in particular was buoyant in some areas, but was by no means characterized by Easter demand across the board. Conventional cream was traded at an average of EUR 8.60/kg fat in the 15th calendar week, while VLOG-compliant goods were slightly more expensive at EUR 8.70/kg fat. Prices thus remained at a consistently high level.

There was also restraint on the protein market. Demand remained weak, while supply was considered to be sufficient to good. Accordingly, the market was balanced with stable to slightly weaker prices. Skimmed milk concentrate fetched an average of EUR 1.90/kg dry matter in the 15th calendar week. Skimmed milk was traded at an average of 15 cents per kilogram at similar prices to the previous week. The spot milk market developed unevenly. In Germany, the price rose slightly and reached an average of 45.7 cents/kg in the 14th calendar week, an increase of 0.5 cents. Prices remained stable in the Netherlands, while a slight decline was recorded in northern Italy.

Demand for packaged butter increased again in the second week of April, supported by promotions in food retailing. Sales volumes improved slightly, although the peak of the Easter business was still a long time coming. Negotiations for new contracts from April onwards led to price increases in certain areas, but the retail price for branded butter in a 250 g bar remained constant at EUR 1.99. The Süddeutsche Butter- und Käse-Börse (South German Butter and Cheese Exchange) quoted packaged butter unchanged in the range of EUR 7.40 to 7.80/kg. In contrast, the market for block butter remained subdued. Buyers acted cautiously in anticipation of possible price reductions after Easter. Supply was limited due to low stocks and demand was also subdued. The quotation for block butter in Kempten was lowered slightly on April 9 - the range was now EUR 7.35 to 7.55/kg.

Butter prices also fell again on the EEX futures exchange in Leipzig. The average price for delivery dates from April to December 2025 was EUR 7,188/t, a decrease of EUR 61/t compared to the previous week. However, trading activity picked up significantly compared to the previous week, with a total volume of 2,395 tons.

There was a noticeable upturn in demand on the cheese market, mainly due to the approaching Easter and the early vacation and vacation season. Food retailers increasingly called off semi-hard cheese, and bread products were particularly in demand. Increased inquiries were also reported from southern Europe. Stocks remained tight, which had a positive effect on price levels. The Hanover Quotation Commission increased the price range for bread products slightly to EUR 4.80 to 5.00/kg, while block products remained constant at EUR 4.50 to 4.70/kg. In addition, geopolitical uncertainties such as potential US punitive tariffs and animal disease outbreaks (foot-and-mouth disease in Slovakia and Hungary, possible bluetongue in Germany) led to a certain degree of restraint among producers and traders.

The powder market also remained calm. Food-grade skimmed milk powder traded mostly stable - prices in Kempten were unchanged at EUR 2,390 to 2,500/t. Feedstuff goods were reduced by an average of EUR 10 to between EUR 2,300 and 2,330/t. Skimmed milk powder traded at an average of EUR 2,507/t on the EEX, a decrease of EUR 11 compared to the previous week. Demand for whole milk powder remained low, with prices remaining at the previous week's level (EUR 4,370 to 4,460/t). Here, too, production continued to be mainly order-related and no surpluses were observed.

The market for whey powder was divided into two parts. While demand for food products remained solid, supply increased slightly due to higher cheese production. Prices were stable to slightly weaker. The quotation in Kempten was therefore reduced by EUR 10 at the lower end and by EUR 20 at the upper end to between EUR 1,080 and 1,200 per tonne. Lower demand - partly due to reduced calf numbers caused by bluetongue - put slight pressure on feed prices. The range was reduced by EUR 10 to between EUR 845 and EUR 865/t. The whey powder market also declined on the EEX: the average price for April to December was EUR 910/t, down EUR 11 on the previous week.