DCA Market Intelligence (www.dcamarketintelligence.com) reports this week an interesting development in the dairy market: the biggest increase in cheese prices since last september. The main reasons? Concerns about milk availability in Europe and persistently tight stocks. We have heard more than once that some producers are delivering foil cheese that is less than three weeks old.
The dairy market continues to behave unusually for this time of year. Normally, milk supply would be increasing significantly, leading to lower prices across various dairy products. However, that is not happening-instead, many products are becoming even more expensive.
A key factor behind this trend is the shortage of butter stocks, which has so far prevented any price reductions. While a sudden spell of warm weather and an abundance of fresh grass could have some impact, it is unlikely to change the situation overnight.
Lagging milk supply
Another major difference compared to previous years is the lagging milk supply in Northwest Europe. Some factories are even struggling to maintain production. This is due, in large part, to the lasting effects of last year’s bluetongue epidemic, which significantly disrupted livestock numbers and composition. Strict environmental policies are also playing a role in limiting supply.
With cheese stocks also remaining low, we continue to see strong upward pressure on prices. The DCA Benchmark Prices for Mozzarella, Cheddar, and Gouda are rising, as you can see in the graphic.
For more information, please contact
Eric de Lijster, Head of Market Research at DCA Market Intelligence: e.delijster@dcami.com | +31 (0)320 – 269 526
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8233 GT Lelystad
The Netherlands
Visit our website: www.dcamarketintelligence.com.
DCA Market Intelligence B.V. is a leading Price Reporting Agency (PRA), specializing in independent benchmark price reporting and market analysis within the international agri-food sector. With a strong focus on transparency and objectivity, DCA Market Intelligence provides reliable price information essential for market participants worldwide.
This release was published on openPR.
