European Dairy Markets Face Historic Low Prices Amidst Oversupply
According to DCA Market Intelligence, the European dairy market is experiencing significant pressure with raw milk prices at their lowest in five years, falling below €25 per 100 kilograms. Northern Germany has been particularly affected, showing the weakest price levels. This price drop is attributed to an oversupply of milk and limited demand for products like whole and skimmed milk.
Other dairy commodities are also facing a downturn. Cream and skimmed milk concentrate (SMC) prices are declining, with SMC now below €1,000 for the first time since the start of the COVID-19 pandemic in Europe. Butter prices hover around €4,000 per metric tonne, reflecting the challenging market conditions.
Seasonal factors are exacerbating the situation. Typically, there is a seasonal increase in demand for cream before Christmas, but this year prices continue to fall. Market sources expect further pressure due to upcoming production disruptions during the holiday season.
The cheese market is not immune to these trends. Mozzarella has experienced a sharp week-on-week decline of 4.68%, now priced at €2,850 per tonne. Emmentaler exhibits the widest price range, closing at €3,875 per tonne, with prices reported between €3,800 and €4,250.
Despite the downward trend, strong milk production persists in northwest Europe, maintaining high stock levels even as Dutch production figures decline. Butter for first-quarter delivery is priced below €4,000 per tonne, a level not seen since 2021.
