Milk News, 17.04.2025

Milk volumes on the rise - spot milk prices under pressure

At the beginning of April 2025, nationwide milk deliveries continued to increase due to seasonal factors. This led to a sufficient volume of raw materials, although it was still below the previous year's level. In the 14th calendar week, milk deliveries increased by 0.5% compared to the previous week. Nevertheless, deliveries remained 2.1% behind the same period of the previous year. This shows that, despite the seasonal increase, milk production in Germany is still lagging behind the previous year's figures.

Commodity prices under pressure

Commodity prices were predominantly weaker in the middle of April. Particularly noticeable was the market for cream, which recently experienced significant declines at the high price level. There was still some stability in the first half of the reporting week, but cream prices fell significantly towards the end of the week due to the upcoming Easter holidays. Demand was brisker in the days leading up to the holidays, as many dairies were expecting increased production, but not all were able to fully utilize this production capacity. Conventional cream traded at an average of EUR 8.3/kg fat in the 16th calendar week, which represents a decrease of around EUR 0.3 compared to the previous week. VLOG goods recorded a similar price decline and were also traded lower.

The market for raw milk on the spot market also showed a weaker price trend. In the 15th calendar week, the average price for raw milk was 44.1 Ct/kg, a fall of 3.5% compared to the previous week. Spot milk prices also fell by 2.0 cents in the Netherlands and raw milk prices in northern Italy were stable to slightly weaker. On the international markets, particularly in the USA, market participants faced challenges due to the uncertain developments in the US government's trade policy and the tariff increases.

Butter price stable

Demand for packaged butter was brisk in the pre-Easter business. Prices remained stable and manufacturers reported a noticeable increase in orders, particularly due to the upcoming holidays. In the week under review, dairy selling prices for packaged butter remained unchanged at the same level as at the beginning of the month, and prices on the butter and cheese exchange in Kempten remained stable at between EUR 7.40 and EUR 7.80/kg. Prices in supermarkets were also relatively stable. The 250-gram packet of German branded butter continued to be sold at EUR 1.99, which represents an increase of 24 cents compared to the same period last year. Organic butter remained at a level of EUR 3.49 for the 250-gram packet.

The market for block butter was characterized by a rather quiet business situation during the Easter week. Buyers were cautious and hesitant to conclude new contracts due to uncertainty about future price developments. Domestic prices for block butter were stable to slightly weaker. On the exchange in Kempten, the range for block butter was EUR 7.25 to 7.48/kg, which represents a slight decline of 7 cents to 10 cents compared to the previous week.

However, global butter prices, particularly on the world market, rose again in April. At the GlobalDairyTrade tender in New Zealand, the average price for butter rose to the equivalent of EUR 6,750/t, an increase of 1.5% compared to the previous auction. Despite the increase, however, international prices were still well below German price levels, making domestic butter less competitive on the global markets.

Cheese market without major changes

The cheese market remained stable in mid-April. Demand remained high, particularly in the food retail and food service sectors. The export business also recorded stable sales, particularly within the EU, where demand from various countries continued. In Southern Europe, demand increased noticeably as the vacation season began, and Eastern European countries also showed demand for cheese. Stock levels remained low and manufacturers were able to continue to meet demand due to good production. Prices for bread and block products remained stable, with the quotation for bread products in Hanover remaining unchanged at EUR 4.80 to EUR 5.00/kg in the 16th calendar week.

Powder market: fluctuating prices and uncertain global trading conditions

The situation on the powder market was calm in mid-April, influenced by the upcoming holidays and global trade conflicts. Prices for food-grade skimmed milk powder trended weaker in some cases, while prices for whey powder remained stable. Prices for skimmed milk powder on the international market were very volatile. In the GlobalDairyTrade tender, prices for skimmed milk powder fell by 2.3%, resulting in an average price of EUR 2,457 per tonne.

The market for feed skimmed milk powder also remained calm, with prices for feed products falling by EUR 10 to between EUR 2,290 and EUR 2,320/t in the week under review. Whole milk powder also showed little movement, with slight price corrections due to weaker trends on the fat market. Prices for whole milk powder on the Kempten exchange fell by EUR 10 to EUR 20 during the Easter week and ranged from EUR 4,350 to EUR 4,450 per tonne.