The market situation for butter, milk and dairy products remained fairly stable in January, although the outbreak of foot-and-mouth disease in Germany has unsettled market participants. Despite a slight recovery in demand for packaged butter, this fell short of manufacturers' expectations. Due to the limited supply and contractual commitments, prices for molded butter are expected to remain stable in a range of EUR 8.50 to 8.80/kg. Consumer prices could also remain at a high level. Demand on the market for block butter is expected to remain stable, particularly for short delivery times. Prices could remain within the current range of EUR 7.30 to 7.50/kg. In view of the high prices on the global market, German butter remains competitive to a limited extent.
Milk deliveries have increased slightly again at present, although the previous year's level is still not being reached. Uncertainty caused by foot and mouth disease (FMD) has so far had less of an impact on the commodity markets, as demand for processable dairy products remains stable. Cream prices have firmed slightly and remained at a level of EUR 8.5/kg fat, while prices for skimmed milk powder are likely to remain stable or weaken slightly. The spot milk market continues to behave inconsistently. The ife Institute in Kiel has published a national average price of 48.7 cents/kg for Germany. A drop of 0.7 cents compared to the previous week. In the Netherlands and Italy, spot milk prices rise by 2 cents.
The outbreak of foot-and-mouth disease (FMD) caused a major shock on the market for skimmed milk powder. Exports to various third countries were stopped. However, some of these markets are now being reopened according to a regionalization principle, similar to that in the EU, which is calming the market again.
In Kempten, the butter and cheese exchange set prices for food-grade skimmed milk powder at a range of EUR 2,400 to 2,550/t on 22/01/2025, EUR 50/t less than in the previous week.
The EEX (European Energy Exchange) in Leipzig indicated rather weaker prices at the beginning of the year. At the end of the third calendar week, the average price for the trading months January to September 2025 was EUR 2,654/t. This was EUR 19 less than a week earlier.
If the FMD situation in Brandenburg continues without any further findings, the price movement could pick up again in the coming weeks.
ZMP Live Expert Opinion
The market for butter and dairy products is stable but uncertain. Demand and prices remain solid, while export business interrupted by FMD is slowly starting up again. Declining milk deliveries could lead to positive price developments.
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