Cheddar prices are the one section in dairy commodities that haven’t seen a 2021 bounce relative to other dairy commodities.
However, the consistency in cheese prices makes up for some of the flatness in price.
Cheese price is consistently higher than other dairy ingredients and hence why some Irish processors would take flatter prices.
But as it stands for 2021, the butter and skim mix is making more money and is slightly less costly to make than cheese.
Skim milk power (SMP), butter and whole milk powder (WMP) have all seen a very significant lift in price traded.
This time last year, SMP was heading for €2,000/t and now its heading for €2,500/t.
Butter this time last year was heading for €3,000/t and instead it’s heading for €4,000/t.
WMP this time last year was €2,700/t and instead its heading for €3,200/t.
In contrast, cheddar prices as reported are trading closer to €3,000/t – very similar if not the same as 2020.
While cheese prices are traditionally more stable and higher than some of the other dairy commodities some were expecting a bounce in cheese prices, but it hasn’t come yet.
The GDT this week remained more or less steady, essentially banking the previous gains that happened in February and March.
Australian banks operating in New Zealand (NZ) are predicting a bumper price for milk for the next wave of milk from NZ that will come in July and August, the opposite end of the year to European flows.