There was a bit more stability in dairy markets this week, but no real good news either.
Butter prices didn’t fall in Europe, which is at least better than a continuing decline.
Butter prices are currently at €5,040/t, which is down from almost €7,000/t in the last 10 weeks.
The cheddar cheese market was also stable this week, with no change in price for European cheddar.
It currently sits at €3,580/t and if we go back 10 weeks ago, it was trading at €4,455/t, so it’s back significantly.
Irish cheese processors with stock in hand are feeling the pinch on this, particularly for more mature cheese, most of which would have been made over six months ago.
There was no stability on the powder market, with whole milk powder (WMP) decreasing this week by €155/t, while skim milk powder (SMP) reduced by €40/t. These drops follow on from last week’s Global Dairy Trade (GDT) auction, where WMP fell by 2.4% and SMP fell by 1.6%.
Interestingly, the malaise affecting European markets hasn’t really affected the mood in Fonterra, at least for now.
According to our sources, it still expects the payout for this season to be around the $10/kg MS mark, which is an extremely high price by New Zealand standards.
The three-week shareholder vote on divesting Fonterra’s consumer foods business is coming to an end later this week, so maybe the mood will change when that’s over.
Meanwhile, September results show that NZ milk production increased by 3.4% compared with September 2024.
There was a bit more stability in dairy markets this week, but no real good news either.
Butter prices didn’t fall in Europe, which is at least better than a continuing decline.
Butter prices are currently at €5,040/t, which is down from almost €7,000/t in the last 10 weeks.
The cheddar cheese market was also stable this week, with no change in price for European cheddar.
It currently sits at €3,580/t and if we go back 10 weeks ago, it was trading at €4,455/t, so it’s back significantly.
Irish cheese processors with stock in hand are feeling the pinch on this, particularly for more mature cheese, most of which would have been made over six months ago.
There was no stability on the powder market, with whole milk powder (WMP) decreasing this week by €155/t, while skim milk powder (SMP) reduced by €40/t. These drops follow on from last week’s Global Dairy Trade (GDT) auction, where WMP fell by 2.4% and SMP fell by 1.6%.
Interestingly, the malaise affecting European markets hasn’t really affected the mood in Fonterra, at least for now.
According to our sources, it still expects the payout for this season to be around the $10/kg MS mark, which is an extremely high price by New Zealand standards.
The three-week shareholder vote on divesting Fonterra’s consumer foods business is coming to an end later this week, so maybe the mood will change when that’s over.
Meanwhile, September results show that NZ milk production increased by 3.4% compared with September 2024.
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