Milk News, 10th / Oct / 2024

In the last calendar week, there was a further decline in milk deliveries of 0.8%. Compared to the same week last year, 1.4% less milk was delivered to dairies. Looking at the period from the beginning of the year to September 2024, the total volume of milk delivered fell by 0.2% compared to the same period last year. Despite a slight improvement in milk quality, the availability of raw materials remained low. Spot market prices for raw milk remained largely stable, with a minimal decrease of 0.1 cents to a national average of 60.7 cents per kilogram in the 40th calendar week. In the Netherlands, prices fell by 7.4%, while they remained stable in Italy.

Trade in food-grade skimmed milk powder was also quiet in mid-October. The focus was on fulfilling existing contracts, while hardly any new ones were concluded. Short-term requirements were partially covered, but most buyers have been supplied for the current year. New contracts for later delivery dates were rare, as price forecasts for the first quarter of 2025 and beyond varied widely. Despite sufficient supply, there was no selling pressure. Prices weakened at the beginning of October. On the butter and cheese exchange in Kempten, the price of food-grade skimmed milk powder was between EUR 2,500 and EUR 2,620 per tonne on 9 October, representing a drop of EUR 50 at the upper end compared to the previous week. Globally, EU goods were only competitive to a limited extent due to low demand in third countries. On the European Energy Exchange (EEX) in Leipzig, 205 tons more were traded in the 40th calendar week than before, resulting in a trading volume of 3,155 tons. Prices for the terms from October 2024 to June 2025 fell, with the average price dropping by EUR 11 to EUR 2,637/t. A similar picture emerged for skimmed milk powder in feed quality. Deals were concluded for short-term deliveries in particular, while market participants were otherwise cautious.

Demand for packaged butter was brisk in October, despite higher consumer prices. Retailers raised the price of 250g of German branded butter to EUR 2.39, which was 94 cents more than in the previous year. The Süddeutsche Butter- und Käse-Börse in Kempten recorded a price of 8.50 to 8.80 EUR/kg for packaged butter on 09.10.24, which is an increase compared to the previous week. The market for block butter remained quiet, with few deals, mainly within Europe. Prices were unchanged at EUR 7.95 to 8.20/kg. On the European Energy Exchange (EEX) in Leipzig, butter prices for October 2024 to June 2025 fell to EUR 7,048/t, with a trading volume of 3,525 tons.

Last week, the German cheese market was characterized by tight supply due to declining milk deliveries, which had a particularly strong impact on products in At the same time, there was high demand from retail, industry and exports. Stocks in ripening warehouses decreased and goods left the factories young. In the 41st calendar week, prices for block goods rose by 15 cents to 4.40-4.60 EUR/kg at the lower end and for bread goods by 10-20 cents to 4.50-4.80 EUR/kg.