Milk News, 27.03.2025

The seasonal increase in milk production stagnated from mid-March. According to the Central Milk Market Reporting (ZMB), deliveries in the 11th calendar week only rose by 0.1% compared to the previous week and thus remained below the previous year's level. Since the beginning of the year, a total of 2.1% less milk has been recorded than in the previous year. Raw milk prices also fell in the second half of March. According to the ife Institute in Kiel, the national average price in week 12 was 45.8 cents per kilo - a fall of 1.1 cents.

At the end of the month, trade in food-grade skimmed milk powder remained subdued. There were isolated purchases in Europe, but interest on the global market remained low. Market observers attributed this to growing competition from the USA, where milk production increased more than in previous years. The increased supply lowered prices there, which, together with a stronger euro, reduced the competitiveness of European exports. Prices remained stable to slightly lower overall. Demand for skimmed milk powder for animal feed was also low and prices trended slightly downwards. The Kempten exchange reduced the price range by 10 euros to between 2,310 and 2,340 euros per tonne. The market for whole milk powder also remained calm. The high prices within the EU and the rise in the euro made exports to third countries more difficult.

Demand for molded butter rose again after a brief decline and reached an average level for this time of year. However, according to national statistics, sales figures were slightly below the previous year's level. Manufacturers expect orders to continue rising until Easter. Prices for packaged butter remained stable at the end of March due to existing contracts, while negotiations on new April contracts are ongoing, which could be influenced by rising cream prices. The Süddeutsche Butter- und Käse-Börse confirmed a stable price range of EUR 7.40 to 7.80/kg for butter. The price for a 250-gram pack of German brand butter is EUR 1.99 in the entry-level price segment. The market for block butter was stable, with continuous inquiries from the European industry. Higher prices were achieved in some cases, but buyers were reluctant to accept price increases. Exports to third countries slowed down as higher EU prices and favorable competitive offers reduced competitiveness, exacerbated by the higher euro exchange rate. Domestically, block butter prices remained largely constant. On the European Energy Exchange, prices rose slightly and the average price for deliveries from March to November 2025 was EUR 7,429/t, an increase of EUR 6. However, trading activity declined, with only 2,120 tons of block butter traded, 750 tons less than in the previous week.

Demand for sliced cheese remained strong at the end of March. Food retailers reported high sales volumes and industrial and bulk customers purchased their agreed quantities as planned. Unforeseen postponements or early orders were rare. There were also more inquiries from Southern Europe and exports to third countries were stable. Uncertainties in trade with the USA have not yet affected current business. However, supply remained limited. Stock levels have been low for weeks, as production has not been sufficient to replenish them. Instead, cheese was delivered early so that producers kept their regular deliveries, but no goods were available for spot transactions. Due to the continued low supply of raw materials, fat availability could tighten further, especially before the Easter holidays when larger quantities are in demand. Prices remained stable, but are expected to rise in the coming weeks. Higher contracts have already been confirmed for April. The quotation commission in Hanover confirmed unchanged prices in the 13th calendar week: Block goods remained at 4.50 to 4.70 EUR/kg, while bread goods continued to trade between 4.75 and 4.95 EUR/kg.