It’s been a bad week for dairy markets with a sharp decline in almost all product categories.
European butter prices have taken a tumble, with prices falling by €385/t and butter quotes are now at €6,425/t, which is the lowest price since June 2024.
The lowest price that butter has been since 2022 was in 2023, when it hit €4,400/t, so the current price is well above that, but is still a big concern for producers.
Other products also dropped in price, with cheese taking a big tumble, dropping from €4,325/t to €4,140/t, which is a €185/t price drop.
It was a similar story for powders, with whole milk powder (WMP) dropping by €110/t, while skim milk powder (SMP) dropped by €70/t.
These price drops represent one of the worst weeks for dairy markets in Europe since late 2022 and early 2023.
The question many people are asking is whether this market turn will be sustained or is it just a sentiment issue?
Analysts are pointing to the fact that this is a crucial time in the European market, as buyers are placing orders for Christmas deliveries of butter, cream, cheese and other ingredients.
Also, Ramadan is earlier than usual next spring, so this is also bringing forward purchases for that festival.
The other big driver of buyer power at present is that they know global milk supplies are on the up, with increased output from the US and New Zealand. If New Zealand has a good peak, that will bring a lot more product on to the world market, particularly for powders.
It’s been a bad week for dairy markets with a sharp decline in almost all product categories.
European butter prices have taken a tumble, with prices falling by €385/t and butter quotes are now at €6,425/t, which is the lowest price since June 2024.
The lowest price that butter has been since 2022 was in 2023, when it hit €4,400/t, so the current price is well above that, but is still a big concern for producers.
Other products also dropped in price, with cheese taking a big tumble, dropping from €4,325/t to €4,140/t, which is a €185/t price drop.
It was a similar story for powders, with whole milk powder (WMP) dropping by €110/t, while skim milk powder (SMP) dropped by €70/t.
These price drops represent one of the worst weeks for dairy markets in Europe since late 2022 and early 2023.
The question many people are asking is whether this market turn will be sustained or is it just a sentiment issue?
Analysts are pointing to the fact that this is a crucial time in the European market, as buyers are placing orders for Christmas deliveries of butter, cream, cheese and other ingredients.
Also, Ramadan is earlier than usual next spring, so this is also bringing forward purchases for that festival.
The other big driver of buyer power at present is that they know global milk supplies are on the up, with increased output from the US and New Zealand. If New Zealand has a good peak, that will bring a lot more product on to the world market, particularly for powders.
SHARING OPTIONS