Despite the usual seasonal increase, delivery volumes declined last week. The ZMB reported that the volume of raw material delivered was 0.3% below the level of the previous week. Overall, the milk volume so far this year is 1.9% lower than in the same period in 2024. In addition to bluetongue, the low temperatures could be the main reason for the decline. The spot markets did not find a consistent direction for the raw material. According to the ife Institute Kiel, the domestic price was 48.4 cents per kilogram, which corresponds to a slight decrease of 0.3 cents compared to the previous survey. In the Netherlands and Italy, however, prices rose in the second half of January.
In the sliced cheese market, trade is reported to be brisk and sales satisfactory. Sales in the food retail sector remain at a high level. Contract volumes were quickly called up by the industry. The GM sector ordered the usual seasonal quantities of cheese. The export business has calmed down again following the outbreak of FMD. While trade within Europe remained stable, some third countries are now also accepting German goods again. New certificate approvals have also made exports to Asia possible. Despite the temporary halt to exports, there was no increase in stocks or pressure to sell - the goods continued to be sold quickly, which is mainly due to the low milk supply. At EUR 4.60 to 4.75 per kilogram, prices for block products in Hanover remained at the same level as the previous week.
Demand for butter is stable and has recovered after a decline. Sales figures recently recorded a slight increase as stocks from the Christmas period were gradually used up. Nevertheless, manufacturers' expectations remained below forecasts at the end of the month. The price level for packaged butter is unchanged. The Süddeutsche Butter- und Käse-Börse quoted a range of 8.50 to 8.80 EUR/kg. Consumer prices in the entry-level segment also remained stable at EUR 2.39 per 250-gram packet, with discount campaigns in the retail sector occasionally making cheaper offers possible. The block butter market was calm but steady. Contracts were called up and some deals were also concluded last week. Industrial demand met with low supply. After the milk market shock in mid-January, the situation returned to normal. Exports to third countries continue to play a subordinate role, as competitiveness is limited due to high price differences to the global market. Butter prices on the European Energy Exchange (EEX) in Leipzig were firmer. The average price for the months January to September 2025 was EUR 7,294/t in the fourth calendar week - EUR 90 more than in the previous week. However, the trading volume of 1,080 tons was significantly lower than in the previous week.
The market for food-grade skimmed milk powder calmed down at the end of January following the outbreak of foot-and-mouth disease in Germany, but remains uncertain. Flows of goods continue to be diverted and around two thirds of exports remain on the EU internal market, with restrictions on products from the affected region of Brandenburg. Despite some uncertainties within the EU, the European food industry continues to show interest and inquiries are also being received from within Germany. The quantities traded were at the usual seasonal level, and some buyers secured goods for later dates. Prices remained inconsistent.
ZMP Live Expert Opinion
After the initial shock of the FMD outbreak, the markets have largely calmed down and are showing a largely normal trading trend. In addition to this factor, prices are still primarily determined by delivery volumes. These have been declining, ensuring that hardly any stocks can be built up and thus no price pressure arises.
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