DCA benchmarks: Liquid commentary week 15

Demand for liquid dairy is picking up again towards Easter. Benchmarks for skimmed milk concentrate and whey concentrate are increasing, as these products are profitable for drying. For raw milk, it remains difficult to find buyers due to limited processing capacity.The DCA benchmark for skimmed milk concentrate rises by €190 to €1,360 per tonne. The market is supported by higher skimmed milk powder prices. Despite higher energy costs, drying remains economically attractive. Supply is relatively high, but demand is also strong, including from the fresh segment.Milk supply in Northwest Europe is moving towards the seasonal peak, or may already have reached it. Market views differ on this. In any case, supply remains ample and processing capacity is being used at full levels.This keeps prices for raw milk, and especially skimmed milk on the spot market, under pressure. Higher fuel costs are also slowing down trade. Raw milk benchmarks are broadly stable. The skimmed milk benchmark increases to €2 per 100 kg, but this is still a low level. Prices depend strongly on transport distance, ranging from €0.50 to €6. Whey concentrate remains relatively scarce, while demand is strong due to shortages in whey powder and high prices. The DCA benchmark increases by €75 to €1,010 per tonne. The gap with skimmed milk concentrate widens further after prices where equel two weeks ago.