Milk News, 16.01.2025

Milk deliveries in Germany increased at the start of the new year, but in the first week of January 2025 remained significantly below the previous year's figure. According to the Central Milk Market Reporting (ZMB), the delivery volume in the first calendar week was 0.9% higher than in the last week of 2024, but 2.7% below the same period of the previous year. According to the ife Institute, the average spot milk price in Germany rose to 49.4 cents per kilogram in the second calendar week, an increase of 7.4 cents compared to the previous week.

In mid-January, cheese manufacturers expressed their satisfaction with the sales situation. Both food retailers and the industry continued to order large quantities, while demand from the bulk consumer sector was quieter again for seasonal reasons. Exports within Europe varied, with typical seasonal volumes to Southern Europe. However, trade with countries outside Europe was severely affected by foot and mouth disease (FMD), causing uncertainty among many market participants. Since the first FMD case in Germany since 1988 in Brandenburg, milk producers and manufacturers have acted cautiously. Due to the loss of FMD-free status, some dairies lack the necessary documents for export. Some third countries have already imposed import bans on German animal products. Over the holidays, stocks in the ripening cellars recovered somewhat, but remained low due to high demand. As a result, mainly young goods were delivered. Prices on the market were mixed, partly due to the uncertainties surrounding the FMD situation.

The market for packaged butter remained stable at the start of the new year. Following a slight decline in demand after the holidays, interest normalized and returned to the usual level. Prices remained constant for both consumers and dairies. Since October 2024, a 250-gram pack of German branded butter has cost an unchanged EUR 2.39 in the retail sector. At the butter and cheese exchange in Kempten, prices were quoted at between EUR 8.50 and EUR 8.80/kg. Prices for block butter were initially mixed, but recovered again after falling at the turn of the year. While domestic demand increased, exports were affected by import bans due to foot and mouth disease (FMD) in Brandenburg.

The FMD outbreak in recent days was also the main focus on the powder markets. The FMD case had an impact on all powder products. Manufacturers concentrated on checking export certificates to determine which products could still be delivered to other countries and which could not. This led to a cautious trade policy, particularly for food-grade skimmed milk powder. Exports to third countries were stopped, which slowed down trade and resulted in fewer goods being shipped. Demand within the EU was also restrained. Prices remained largely stable, with slight downward fluctuations. In Kempten, the price for food-grade skimmed milk powder remained unchanged at EUR 2,450 to 2,600/t on January 15, 2025. On the European Energy Exchange (EEX) in Leipzig, prices fell slightly in the second week of January to an average of EUR 2,673/t for delivery periods up to September 2025, a decrease of EUR 10 compared to the previous week. Last year, around 67% of German skimmed milk powder exports remained within the EU, with the Netherlands, Poland, Belgium and Italy being the main customers. Just under a third was exported to third countries.