Milk News, 4th / Oct / 2024

Milk deliveries rose slightly by 1.0% last week compared to the previous week, as cooler temperatures interrupted the seasonal decline. Despite this increase, milk deliveries were still 0.9% below the previous year's level. Over the period from January to mid-September, 0.2% less milk was delivered than in the previous year.

The supply situation on the semi-hard cheese market remains tight due to the low milk deliveries. Stocks in the ripening warehouses continued to fall and the goods left the plants in a young state. The supply was sufficient to fulfill existing contracts; however, additional requests could not be met. Demand for semi-hard cheese was exceptionally high in all sales markets. Food retailers ordered large quantities and both industry and the food service sector showed increased interest in cheese. In addition, the public holiday in Germany led to a further increase in demand, as retailers and consumers took precautions. Interest also remained high in the southern European vacation regions, and third countries showed increasing interest in buying German cheese. Due to limited availability and high demand, cheese prices remained at the same level as in recent weeks; some price increases were also reported.

Demand on the butter market showed slight momentum at the start of the new month; overall, demand is at a normal seasonal level, although more goods were sold in the previous year. This can be attributed to the recent price increases and the very high order volumes in the previous year. Butter prices in the food retail sector were raised to EUR 2.39 for a 250 gram packet. The Süddeutsche Butter- und Käse-Börse in Kempten recorded an unchanged price of EUR 7.80 to 8.05/kg for packaged butter on October 2, 2024. Market participants reported quiet trading for block butter. Existing contracts were fulfilled, but there were few new deals. Due to high cream prices, producers tried to push through higher prices, but met with limited willingness to pay. Uncertainty about the availability of raw materials led to restraint on the market and falling prices for block butter. On the European Energy Exchange (EEX) in Leipzig, the trading volume for butter rose by 1,255 tons to 2,690 tons in the 39th calendar week. The average price for the period from October 2024 to June 2025 fell by EUR 321 to EUR 7,329 per tonne. On the global market, the block butter price at the GlobalDairyTrade tender in New Zealand fell by 1.4% on October 1, 2024. The average price was EUR 5,779/t, making domestic goods uncompetitive in direct comparison and resulting in only a few export transactions.

At the beginning of October, trade in food-grade skimmed milk powder was rather subdued. In view of the scarce availability of raw materials and uncertain price forecasts, buyers held back. Manufacturers' stocks were low and production was mainly order-related. Prices on the European Energy Exchange (EEX) in Leipzig continued to fall; the average price for the period from October 2024 to June 2025 was EUR 2,647 per tonne, a decrease of EUR 36 compared to the previous week. In the 39th calendar week, trading in skimmed milk powder contracts rose to 2,950 tons. Prices at the GlobalDairyTrade tender in New Zealand fell slightly by 0.6% on 01.10.24, with the average price at EUR 2,521 per tonne, which was below the German market price. A similar picture emerged for food-grade skimmed milk powder. The market was characterized by low trading activity and restraint on the part of buyers. Due to sufficient supply, no further mark-ups could be achieved.