Milk News, 15.11.2024

Since mid-November, milk deliveries in Germany have stabilized somewhat at a low level. While more stable fat values were observed in southern Germany, the overall low supply combined with high demand meant that producers were barely able to draw on stocks. Cream was classified as extremely scarce, as demand in Germany and Eastern Europe increased significantly. Prices for spot milk were inconsistent; according to the ife Institute, the national average fell by 0.7 cents to 60.1 cents/kg in the 45th calendar week. Demand for butter remained at a high level in November, mainly due to the upcoming Christmas period, which encouraged retailers to stock up early. Packaged butter recorded high sales, although current prices are well above the previous year's level. Dairies reported challenges in logistics, as the short supply was not always able to meet all orders. Prices for molded butter remained stable at EUR 8.50 to 8.80/kg at the Süddeutsche Butter- und Käse-Börse in Kempten, while conventional German brand butter continued to retail at EUR 2.39 per 250-gram packet. The block butter market remained cautious: buyers were hesitant in view of the unclear price trend, which is why sales were mostly limited to short-term deliveries. As the high prices for industrial cream made the production of block butter more expensive, stocks in warehouses remained scarce. On the European Energy Exchange (EEX) in Leipzig, the futures market for butter prices rose, with the average price for November to July 2025 reaching around EUR 7,389 per tonne. Demand on the cheese market was also strong, particularly from the food industry and the bulk consumer sector. Stocks in ripening warehouses remained low, mainly due to the limited availability of raw milk. This shortage resulted in many varieties with a younger age structure being sold. Exports, particularly to Southern Europe, were also receptive, while competition from cheaper batches from Eastern Europe impaired the competitiveness of domestic goods. Prices for block goods remained stable at EUR 4.60 to 4.75/kg, and bread goods were valued at EUR 4.80 to 5.05/kg. The stable to firm price situation is expected to continue until the end of the year, before demand falls again over the turn of the year due to seasonal factors. The market for food-grade skimmed milk powder was also more buoyant in mid-November, supported by higher demand at home and abroad. Rising prices reached a range of EUR 2,530 to 2,630/t on the Kempten exchange, underlining the sustained demand and the surge in demand due to the depreciation of the euro, as European exports became more competitive on the global market. Interest in later delivery dates also increased; on the EEX in Leipzig, the average price for the dates from November to July 2025 rose to EUR 2,724/t. Demand for feed-grade skimmed milk powder remained rather calm, but prices rose slightly to between EUR 2,370 and EUR 2,410 per tonne. The whole milk powder market remained largely stable, but there were sporadic transactions, particularly on the European domestic market. On the Kempten exchange, whole milk powder was quoted slightly higher in the range of EUR 4,330 to 4,420/t.