Milk powder prices near 2022 levels

The Atla spot price for skimmed milk powder is approaching 3,400 €/tonne, a level not seen since 2022. In week 41, the Atla spot price for skimmed milk powder in France reached 3,390 €/tonne, representing a 68 % increase compared to the same period last year.

Price increase over two periods

A first wave of price increase occurred in the spring, with a 34 % gain between January and June, followed by a further 32 % increase between June and October. The trend is observed across the European market, with prices rising among neighboring countries, driven by strong domestic demand for proteins and dynamic export flows, notably to Egypt and Indonesia.

Export records and demand concerns

In July, European exports of skimmed milk powder reached a six-year high. Prices for skimmed milk powder have increased even more in recent weeks in the United States. However, the sustainability of export demand may be questioned given the current price levels.

Butter prices fall in France and Europe

On the other hand, the price of butter continues to decline in France and across Europe. Brussels reported an average of 4,130 €/tonne for community butter in week 40. Prices have even fallen below the 4,000 €/tonne threshold in the Netherlands, reaching 3,700 €/tonne in week 41.

Record butter production and global oversupply

European butter production in July set records, with an 8.5 % increase over the first seven months of the year. The global market for butter is also experiencing a decline, with substantial stocks in Australia and New Zealand, which are nearing the peak of collection.