European Cream Prices Surge Beyond €10,000 as Holiday Demand Meets Tight Milk Supply
Source: DairyNews.today
European dairy markets are facing record-high prices as the holiday season approaches, with the cream price index for Northwest Europe breaking the €10,000 per ton barrier for the first time, according to DCA Market Intelligence.
DCA, a Price Reporting Agency (PRA) providing independent pricing and insights to the agri-food industry, reported Thursday that its cream benchmark reached €10,155 per ton, a historic milestone driven by limited milk supply across the EU. This upward trend reflects broader dairy sector constraints impacting high-demand items such as milk powder, butter, cheese, and cream—a crucial ingredient for products ranging from ice cream to coffee creamers and pastries.
"Until recently, surpassing the €10,000 mark seemed unthinkable," noted Eric de Lijster, Manager of PRA at DCA Market Intelligence. "But since early 2022, factors like the Ukraine conflict have reshaped markets, sustaining higher dairy prices."
The price spike has intensified supply pressures on European dairy producers, as milk remains a constrained resource. This shortage forces producers into strategic decisions regarding the use of available milk across various products. All segments, including milk powders and cheeses, are seeing elevated prices, while dairy farms face setbacks from labor shortages and tightening regulations. Notably, Dutch milk output has dropped by 2% year-over-year, allowing Poland to overtake the Netherlands as the EU’s third-largest dairy producer after Germany and France.
Though demand remains robust, some analysts anticipate relief in the coming months. Cream prices traditionally decrease sharply after November as holiday-related purchasing peaks and “broken trade weeks” follow. Yet, given the unprecedented dynamics in today’s dairy market, predictions remain tentative.
"Until recently, surpassing the €10,000 mark seemed unthinkable," noted Eric de Lijster, Manager of PRA at DCA Market Intelligence. "But since early 2022, factors like the Ukraine conflict have reshaped markets, sustaining higher dairy prices."
The price spike has intensified supply pressures on European dairy producers, as milk remains a constrained resource. This shortage forces producers into strategic decisions regarding the use of available milk across various products. All segments, including milk powders and cheeses, are seeing elevated prices, while dairy farms face setbacks from labor shortages and tightening regulations. Notably, Dutch milk output has dropped by 2% year-over-year, allowing Poland to overtake the Netherlands as the EU’s third-largest dairy producer after Germany and France.
Though demand remains robust, some analysts anticipate relief in the coming months. Cream prices traditionally decrease sharply after November as holiday-related purchasing peaks and “broken trade weeks” follow. Yet, given the unprecedented dynamics in today’s dairy market, predictions remain tentative.
