Cheese and skimmed milk powder (SMP) prices are rising across Europe.

The arrival of summer has given a lift to cheese markets in Europe, with spot prices for cheddar and gouda lifting this week to €3,200/t and €3,000/t respectively.

Mozzarella prices are steady at €3,150/t, which is a very healthy price level.

At the same time, prices for SMP lifted further this week across Europe.

The Dutch dairy board is reporting SMP prices have lifted a further €50/t this week to €2,050/t. In contrast, prices for whole milk powder (WMP) dropped slightly below €3,000/t this week.

Butter prices also slipped back slightly to €4,000/t, which is still a very strong price in historic terms.

On the milk supply front, EU milk production remains subdued this spring. In Germany, milk production for the month of March stood at 2.74bn litres, which is 1.2% ahead of the same month last year.

However, it must be remembered that March 2018 was an exceptionally difficult month for European farmers thanks to adverse weather conditions, so it is no surprise to see German milk supply increased for March 2019.

This brings German milk production for the first quarter of 2019 to 7.8bn litres, which is in line with last year. In France, milk collections for March were down almost 1% on last year at 2.1bn litres. This brings French milk production for the first quarter of 2019 to 6.1bn litres, which is down 2% on the same period last year.