Milk News, 19.12.2024

Milk deliveries have continued to rise in recent weeks, albeit only to a small extent. The ZMB announced that around 0.4% more milk was delivered to dairies in week 49. Compared to the previous year, this results in a difference of - 1.2 %. From the beginning of the year to mid-December, the volume was 0.4% below the previous year's level.

On the cheese market, producers and retailers enjoyed very brisk demand. Sliced cheese was particularly popular with private consumers and sales in the food retail sector were at a high level, even for the season. The industry also called for large quantities, but focused primarily on existing contracts and agreements. The volumes requested from the GM sector were at a typical seasonal level. Exports to Southern Europe proceeded as expected. Although business with third countries was somewhat weaker, the overall trade volume was assessed positively. Stocks in warehouses were not always sufficient and some deliveries were even postponed. The tire level is young. Cheese dairies in particular are hoping that the holidays will allow them to build up their stocks again, at least in part. Prices on the German cheese market remained stable, although some retailers are speculating on lower prices for the beginning of next year, although this will be difficult to achieve due to the short supply.

Food retailers also requested large quantities of packaged butter from producers last week. The Christmas season and preparations for the holidays are currently clearly reflected in consumer behavior. According to sales statistics, the quantities of butter delivered have reached a new high for the year, despite the short supply due to the low quantities of raw milk. However, market participants expect a seasonal decline in orders in the coming weeks. In Kempten, prices remained unchanged. A packet of German branded butter in the lower entry-level segment cost 2.39 euros. The market for block butter saw a slight boost shortly before the holidays, although prices on the Kempten exchange and on the global market fell. Producers reported isolated deals on the European domestic market, although buyers remained hesitant due to the high price level and continued to hope for falling prices in the first quarter of 2025. In December 2024, prices in Kempten ranged between EUR 7.40 and EUR 7.98/kg, which was lower than in the previous week at both the upper and lower ends. On the European Energy Exchange (EEX) in Leipzig, butter prices for delivery dates from December 2024 to August 2025 were mixed and trading volumes fell in the second week of December. A total of 945 tons of butter were traded, which was 635 tons less than in the previous week.

With the start of the Christmas break, the powder markets experienced a quiet trading week. Some transactions were still concluded, but these were mainly limited to short-term requirements. Hardly any new contracts were concluded, as many buyers had already started their Christmas break and had filled their warehouses accordingly. During the holidays, manufacturers concentrated on production and processing existing orders. Prices moved within a broad range and remained largely stable, but also showed weaker trends in some cases. Prices on the European Energy Exchange (EEX) in Leipzig also fell slightly. The average price for the delivery periods from December 2024 to August 2025 fell by EUR 46 to EUR 2,699/t compared to the previous week. Trading activity declined significantly in the second week of December, with volumes falling by 2,080 tons to 2,625 tons. Prices for skimmed milk powder also continued to fall at the GlobalDairyTrade tender in New Zealand due to the holiday break. The auction on 17.12.2024 closed at the equivalent of EUR 2,626/t, which corresponded to a 2.9% drop in the index. Domestic suppliers remained competitive in the third-country business, but demand here was also rather low.