EU prices rose in February for all dairy except SMPStaff Writer |
Dairy World wholesale report
Dairy product markets remained relatively firm in February, propped up in particular by continued demand for fats, says AHDB.
EU prices rose in February for all products except SMP, although with prices already at historically low levels for SMP, only a small drop was recorded.
Butter prices saw a significant jump up, rising 14% in the month. This was the result of traders needing to close deals, along with strong internal demand, particularly as retailers looked to stock up in advance of higher Easter sales.
Demand for WMP in the EU was also strong in February, led by food manufacturers. This pulled up EU prices, but not to the levels seen in NZ. The reduction in milk deliveries has put additional pressure on NZ WMP prices as export demand remains firm. NZ average prices are now at a premium to the US and EU.
In the US, stocks continued to build, keeping downward pressure on commodity pricing as they seek to export surpluses. Cheese and butter both dropped in the month, moving below both EU and Oceania average prices. WMP prices rose marginally, but remain competitive.
Prices for all dairy products rose in Oceania markets as milk supplies remain sparse but import demand, particularly from Asian countries, remains healthy. Butter prices saw the largest increase, likely in response to the need to draw milk away from WMP production. ■
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