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Cheese prices are seeing their biggest increase since September. Key factors include concerns over milk supply in Europe and persistently low stock levels. DCA Market Intelligence reports that some producers are delivering foil cheese that is less than three weeks old. The dairy market is behaving differently than usual for this time of year. Normally, milk production would be rising significantly, which would drive prices down. That is not the case this year. In fact, many dairy products are becoming even more expensive.
A shortage of butter has so far prevented any price drops. While a spell of warm weather and an abundance of fresh grass could have some impact, it is unlikely to bring relief anytime soon. Cheese stocks also remain low, adding further pressure on prices. The DCA Benchmark Prices for mozzarella, cheddar, and Gouda are on the rise.
Another notable development is the lagging milk supply in Northwest Europe. Some factories are struggling to maintain production levels. This is partly due to the lasting effects of last year's bluetongue outbreak, which significantly impacted livestock numbers. Strict environmental regulations are also limiting milk production.
DCA Market Intelligence, based in Lelystad, is tracking these trends and providing independent pricing data and market insights for the food and agribusiness sectors. For now, the dairy market remains unpredictable.
Source: DCA Market Intelligence
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