EU wholesale prices for butter, SMP and whey powder continued their downward trend during September according to DairyCo.
It says buyers are reported to be continuing to adopt a ‘wait and see’ approach while production remains high due to strong seasonal milk production.
DairyCo also cite low levels of demand which are reported in the butter market and butter production is reported to be high. However, some of the negative effect on prices brought about by these two factors has been mitigated by the opening of PSA.
As is the case in the butter market,DairyCo also says SMP production is high which is continuing to depress prices. It outlines that some European SMP manufacturers are reported to have been awarded significant volumes in the recent Algerian SMP tender. This has helped to reduce inventory levels which has reinvigorated some buyer interest in the market.
Cheese production in some areas of the EU is reported to be down due to the Russian ban. This may explain the small increase in Emmental price recorded between August and September.
The decrease in cheese production is also limiting availability of whey powder. While monthly average prices continue to show a decline, weekly price data suggests a slight increase towards the end of September.