DCA benchmarks: Liquid commentary week 12

Liquid dairy prices are showing a slight increase this week, according to DCA Market Intelligence benchmarks. However, the rises are limited, and spot market prices remain at historically low levels.The benchmark price for raw milk in the Netherlands increased by €2 to €13.50 per 100 kg. Despite this increase, the price, which has been tracked since 2007, has never been this low at this time of year. In Germany, spot milk prices are slightly higher, but still at a relatively low level.Strong milk supply continues to put pressure on liquid dairy prices. Volumes in Northwest Europe remain well above last year’s levels, as production moves towards the seasonal peak. Some market participants expect this peak to arrive earlier, possibly due to bluetongue.The price of skimmed milk concentrate has increased slightly for the second consecutive week, recovering from recent lows. The DCA benchmark rose by €120 to €785 per tonne. Compared to milk powder, concentrate margins are currently attractive. However, demand remains limited, as processing capacity is already fully utilised. This situation is expected to continue in the coming weeks due to ongoing strong milk supply. In addition, processing days are reduced around the Easter weekend, and logistics are often more difficult to organise. Higher fuel costs, reflected in diesel surcharges by some transport companies, are also increasing costs, and it's an extra challenge for long-distance trade.