European dairy markets remain relatively stable this week, with small gains for butter (up €15/t to €7,305/t) tempered by falls in the price of whole milk powder (WMP), which is down €30/t, and skim milk powder (SMP), which dropped by €50/t. Cheese also took a knock, with cheddar dropping in price by €20/t to hit €4,775/t.
European dairy markets remain relatively stable this week, with small gains for butter (up €15/t to €7,305/t) tempered by falls in the price of whole milk powder (WMP), which is down €30/t, and skim milk powder (SMP), which dropped by €50/t.
Cheese also took a knock, with cheddar dropping in price by €20/t to hit €4,775/t.
In real terms, powder prices are stable and while SMP is a bit lower than it traded for most of 2024, WMP is at a good price.
Cheese is disappointing, as it has come back almost €1,000/t on where it was during autumn 2024.
The star performer continues to be butter, and even though it’s back on its peak price, it is still a relatively high price.
Seasonal production in New Zealand is up over 3.7% on the same period last year, which is a remarkable turnaround and gives optimism that Ireland’s milk output can do the same in 2025.
The high production in New Zealand doesn’t seem to be drowning out demand as one of the big banks, ASB, is predicting milk prices to increase again on the back of higher gains in WMP and SMP at recent GDT auctions.
In Europe, the latest stats suggest that milk production in Europe increased by 1.7% in November. Ireland played no small part, as production was up a staggering 34% compared to November 2023. For the year as a whole, milk output in the EU is up 0.7% from January to November inclusive.
Elsewhere, November milk production in Australia fell by 0.3% and it fell by 1% in the US but increased by 5.4% in the UK.
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