Dairy prices weakened on the European spot market this week, particularly for milk powders.

Whole milk powder (WMP) dropped in price by €30/t to reach €4,255/t, while skim milk powder (SMP) dropped by €45/t to reach €2,350/t.

Even though powders dropped this week, they remain in or around the same price that they have been for the last four or five months.

There is likely to be a lot more powders hitting the market over the next few months, due in large part to a jump in milk supply in Ireland during May and June.

Added to this are currency issues, with a strong euro, and a key market is outside of Europe, specifically Asia, Middle East and Africa where spending power is more limited.

Cheddar cheese prices are stable, dropping in price this week by €10/t, but holding steady, albeit down almost €600/t on where cheddar prices were at last autumn during a short-lived peak.

Butter increased this week by €5/t to hit €7,385/t. Even though butter is expensive, it’s still in high demand.

Better economic sentiment from Germany is a positive sign, particularly as Germany is a key export location for Kerrygold and is a market that has been under pressure in recent years.

Speaking of markets, all eyes will once again be on the White House in the coming weeks as the deadline for the US tariff negotiations is approaching on 9 July. The outcome will have a big impact on the trading relationship between the US and the EU, with implications for butter exports to the US.