The global dairy market is showing signs of stabilising in the EU, but global prices continue to fall. According to NIEUWEOOGST, pressure on the market persists due to high supply and geopolitical risks.
Prices for ZuivelNL dairy products this week are showing a more stable trend than in previous weeks. At the same time, the price of butter has fallen significantly by €10. The Global Dairy Trade (GDT) online auction has seen prices fall for the second week running.
Following a €10 reduction, the price of ZuivelNL fresh butter this week stands at exactly €400 per 100 kg excluding VAT. Prices for whole milk powder, skimmed milk powder for animal feed and whey powder have remained at the previous week’s levels. This means that the price of whole milk powder is once again €330, skimmed milk powder for animal feed €258, and whey powder€146.
The only product to see a price rise this week was skimmed milk powder for food use. Its price rose by €3 to €273.
The New Zealand online exchange Dutch Dairy Trade (GDT) has seen its prices fall for the second time in a row. This exchange is regarded as a good barometer of the international dairy market.
In early April, its price fell by 3.4 per cent, and this week the GDT is down 2.7 per cent.
The sharpest fall is seen in anhydrous milk fat (-9.6 per cent), followed by butter (-7.9 per cent), lactose (-7.2 per cent) and mozzarella (-3.1 per cent). The price of skimmed milk powder, however, is rising by 3.2 per cent, and cheddar is also showing an increase (+1.1 per cent).
According to market participants, geopolitical tensions and disruptions in the Strait of Hormuz are putting further pressure on prices. The dairy sector is facing rising costs for transport, insurance and production. Meanwhile, milk production remains high, whilst demand remains subdued.
Source: NIEUWEOOGST
