European dairy prices have rallied further this week as poor weather persists across Europe. Weather has been especially poor in Ireland and the UK in 2018, while on the continent, spring is over a month late and the usual flush of peak milk has not come this season.

With milk collections down across Europe, dairy buyers are scrambling to secure stocks ahead of the warmer summer months when fresh dairy consumption will rise.

Butter prices jumped a further €300/t this week on spot markets and are now trading about the €5,500/t mark. Butter supplies remain extremely tight across Europe, with no stocks sitting in storage and buyers will be wary of another price spike similar to last summer.

On cheese markets, gouda and mozzarella prices rose by €100/t this week to €2,800/t and €3,000/t respectively.

Overall, dairy markets in Europe are rising amid strong buyer demand coupled with lower than expected milk supplies following a difficult spring. Futures dairy markets also paint a healthy picture out into the summer and autumn months.