Over the last month, whey products – the most valuable products in the dairy portfolio – have been struggling.

Products such as whey protein isolate (WPI-90) and, in particular, whey protein concentrate (WPC-80) have suffered from easing demand.

Less than two months ago, both products were riding the crest of a wave, trading at €30,500/tonne (t) for WPI-90 and close to €27,000/t for WPC-80. Today, those values have dropped to €28,500/t and €22,500/t respectively.

Market analysts had suggested there would inevitably be pushback against such high prices, but reductions of this scale weren’t on anyone’s bingo card.

More and more dairy processors across the world have invested in plants to process whey, which has been the shining light of dairy markets in recent years. Further price reductions would undoubtedly be a concern for those who have made significant investments in this area.

In terms of the main dairy commodities including butter, cheese and powders, European markets have been more positive this week. Butter is the only one of the four commodities to record a decline, falling by €75/t.

Skim milk powder is bullish this week, rising by €150/t to €3,500/t. Whole milk powder and cheddar are also steady but positive.

The Ornua PPI, which gives an indication of potential market returns, is well up for September milk.

The PPI now stands at 135.8, equating to a milk price of 39.12c/l excluding VAT.

This is well over 1c/l higher than the milk prices paid by most co-ops for August supplies, offering hope to farmers for September milk prices.