Increased Milk Processing in Germany
Source: The DairyNews
As per data from the Federal Agency for Agriculture and Nutrition (BLE), approximately 32.43 million tons of cow's milk were documented last year, marking a 1.5% increase, equivalent to 476,700 tons, compared to 2022.
The rise in conventional milk was modest at 1.2%, totaling 30.07 million tons, while organic milk saw a more substantial surge of 4.9%, reaching 1.38 million tons. Additionally, foreign producers contributed 972,800 tons of cow's milk, showing a 5.1% growth from the previous year.
While organically produced milk from Germany experienced a robust 23.7% increase over five years, conventional milk saw a slight decline of 1.7%. The majority of "regular milk" continued to be processed in Lower Saxony, including Bremen, accounting for 7.17 million tons. Bavaria closely followed with 7.04 million tons. However, in the organic milk category, the Free State led with a substantial 678,000 tons, followed by Baden-Württemberg with 187,842 tons.
Elevated Block Butter Prices
Since November 2023, local dairies have been receiving reduced milk compared to the same period in the previous year, reporting a 1.2% decline according to the Central Milk Market Reporting (ZMB). However, official prices for dairy products, including block butter and various cheeses, remained steady in mid-February.
The escalating demand for block butter from the industry empowered manufacturers to dictate higher selling prices. The South German Butter and Cheese Exchange in Kempten increased the quotation by an average of 15 cents on Wednesday (Feb 14), ranging from €5.35/kg to €5.45/kg. The sliced cheese market was reported as balanced. Meanwhile, in the bread category, the quotation for Edam and Gouda in Hannover experienced a slight reduction of 5 cents, settling at €4.10/kg to €4.30/kg.
Revival in Skimmed Milk Powder Business
According to ZMB, there has been a resurgence in demand for skimmed milk powder. With seasonal production relatively low and reduced inventories, manufacturers faced no pressure to sell, resulting in stabilized prices after earlier declines. The Kempten Exchange reported a surcharge of 1 or 2 cents, bringing feed-grade powder sales to €2.31/kg to €2.34/kg.
Conversely, interest in whole milk powder was limited, leading to only a few orders. New sales, according to the Kempten Exchange, occurred at a discount of around 3 cents, ranging from €3.59/kg to €3.67/kg. Prices for whey powder remained unchanged, as indicated by the survey from the Butter and Cheese Exchange.
While organically produced milk from Germany experienced a robust 23.7% increase over five years, conventional milk saw a slight decline of 1.7%. The majority of "regular milk" continued to be processed in Lower Saxony, including Bremen, accounting for 7.17 million tons. Bavaria closely followed with 7.04 million tons. However, in the organic milk category, the Free State led with a substantial 678,000 tons, followed by Baden-Württemberg with 187,842 tons.
Elevated Block Butter Prices
Since November 2023, local dairies have been receiving reduced milk compared to the same period in the previous year, reporting a 1.2% decline according to the Central Milk Market Reporting (ZMB). However, official prices for dairy products, including block butter and various cheeses, remained steady in mid-February.
The escalating demand for block butter from the industry empowered manufacturers to dictate higher selling prices. The South German Butter and Cheese Exchange in Kempten increased the quotation by an average of 15 cents on Wednesday (Feb 14), ranging from €5.35/kg to €5.45/kg. The sliced cheese market was reported as balanced. Meanwhile, in the bread category, the quotation for Edam and Gouda in Hannover experienced a slight reduction of 5 cents, settling at €4.10/kg to €4.30/kg.
Revival in Skimmed Milk Powder Business
According to ZMB, there has been a resurgence in demand for skimmed milk powder. With seasonal production relatively low and reduced inventories, manufacturers faced no pressure to sell, resulting in stabilized prices after earlier declines. The Kempten Exchange reported a surcharge of 1 or 2 cents, bringing feed-grade powder sales to €2.31/kg to €2.34/kg.
Conversely, interest in whole milk powder was limited, leading to only a few orders. New sales, according to the Kempten Exchange, occurred at a discount of around 3 cents, ranging from €3.59/kg to €3.67/kg. Prices for whey powder remained unchanged, as indicated by the survey from the Butter and Cheese Exchange.
