27 January 2021: You thought last week was bad?

The market is raging. Whey is up €60 and skim a full €100, 7% and 5% respectively. Rather than write reams, I’ll list reasons by bullet point:

  • Cheese producers for catering have severely scaled back production because of restaurant closure. Whey from mozzarella production is most seriously affected.

  • Chinese imports continue at high level

  • Liquid milk collections are down by 1.5-2% - cold weather, high feed costs, poor returns

  • End users put off Q1 purchases, and have returned for spot supplies, exacerbating the rise

  • Demand for animal feed use remains strong, despite dire market prices for pork across Europe

  • Middle market traders are ratcheting the spot market higher, outbidding consumers and sitting on long books

  • A major supplier of an alternative product (acid whey) is having difficulty sourcing liquid serum

My prediction of mid March before the market will break requires revision, probably into April or beyond, as long as restaurants stay shut and extant animals need feeding.


At least the pound is exploring giddy heights not seen for a six-month or longer, buoyed by the lower than expected rise in the UK jobless figure.


BDC agri is the UK broker for Lacto Production milk and whey powder products.

For further information and prices, contact Greg Dunn on 01206 381521 or g.dunn@blackdiamondcommodities.com

3 views

Recent Posts

See All

14 October 2021: Market's on fire!

However predictable a further price rise in skim milk powder was, a €70 or 2.5% hike in a week is pretty staggering. And that isn’t the whole story, as physical supply has dried up and the market pric

7 October 2021: Heat turned up even higher

The skim milk price is heading into space faster than Captain Kirk, up nearly 2% this week, or €50 per tonne, and it's now impossible to find under €2800, and then only a truck at a time. It's getting

30 September 2021: Market divergence?

The two pillars of the milk powder market seem to be moving apart. Sweet whey is showing a €10 decrease on the Dutch market, but still unchanged in France. The interesting factor is what is happening