Key Highlights
- Butter prices steady at €6,970 per tonne
- Whole Milk Powder (WMP) falls by €50 per tonne, now at €4,205 per tonne
- Cheese and Skim Milk Powder (SMP) see marginal declines
- Global Dairy Trade (GDT) WMP prices down, hinting at a broader global trend
- Production shifts: Butter output down, cheese production up
Dairy Market Trends: Price Stability with Slight Adjustments
The European dairy market has shown relative stability, with only minor fluctuations in key commodity prices. Butter prices held firm at €6,970 per tonne, while WMP recorded a €50 per tonne decline, bringing it to €4,205 per tonne.
Other dairy products also witnessed minor shifts. Cheese prices dipped by €10 per tonne, and SMP remained nearly unchanged, decreasing by just €5 per tonne to €2,445 per tonne.
Global Dairy Pricing: Signs of Alignment
Data from the Global Dairy Trade (GDT) platform indicates WMP prices at €3,965 per tonne, with pulse auctions signaling a further decline to €3,795 per tonne. This suggests that global dairy markets may be converging towards lower pricing levels.
Dairy Production Insights: A Mixed Picture
European dairy production figures up to November 2024 reveal a 1.4% decline in butter output, while SMP production increased slightly by 0.5%. On the other hand, WMP production fell by 2.2%, whereas cheese production grew by 2.7%.
Looking at early 2025 trends, the Netherlands reported a 1.8% drop in milk supply for January compared to last year, highlighting regional supply variations that could influence pricing in the coming months.
Outlook: A Cautious Market Ahead
Despite overall price stability, the downward pressure on dairy commodities and shifts in production suggest that market participants should remain cautious. Global trends and regional supply challenges may further impact pricing and production strategies.
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Source: Jordbrukare
