Dairy market appears to be stable for the time being

Published 2020년 9월 23일

Tridge summary

Dairy prices in the EU have seen a slight decrease in the quote for fresh butter and whole milk powder, while skimmed-milk powders and whey powder have seen a increase. Despite improvements since the end of lockdowns, prices are still below pre-corona levels. Rabobank anticipates relatively stable prices with some market pressure, as retail sales are up but the food service industry continues to struggle. The bank also expects increased exports in the second half of 2020 due to unfavorable exchange rates, low oil prices, and increased EU prices for basic dairy products. Milk production is expected to increase globally in the latter half of 2020, with the EU expecting a growth of 1.1% in milk production in the third quarter and 0.7% in the fourth quarter of 2020.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The quotations for fresh butter and whole milk powder both fell slightly by 3 euros per 100 kilos and now come to 337 and 270 euros per 100 kilos respectively. The skimmed-milk powders increased by one euro to 216 euros for skimmed-milk powder and 208 euros respectively for skimmed-milk powder for animal feed. Whey powder is priced at 72 euros, 2 euros more than last week. Rabobank calculated in the latest dairy update that most prices for EU basic dairy products have improved since the end of the corona lockdowns in early June. Nevertheless, the current dairy prices are still a lot lower compared to the pre-corona price level. The bank expects reasonably stable prices for the time being, although there is some pressure on the market. Retail sales are at an increased level. But the food service industry still faces challenges as long as the restrictive measures are in place and the economic impact of corona remains a significant factor. In addition, European warehouses contain ...

Source: Nieuwe Oogst