The Mintec Category Index (MCI) for EU dairy has maintained an upward trend since the beginning of 2021, reaching EUR 3,258/MT on 30th June, up 4.6% quarter-on-quarter (q-o-q). This is an increase of 6.7% since the beginning of the calendar year.
A substantial increase was seen in butter, whole milk powder (WMP), and skimmed milk powder (SMP) prices, supporting the index through to 30th June 2021, with the three categories up by 19%, 15.2% and 12% respectively since the beginning of the year. However, cheese experienced a lower price rise of 2.6% during the same period.
Cheese, the largest component of EU Dairy MCI, accelerated 2.6% during the second quarter of the year, to EUR 2,286/MT on the 30th June, following a stagnant performance during the first quarter. This price rise was attributed to the re-opening of the foodservice sector, which should support a 1% EU cheese consumption growth in the second half of 2021.
Butter prices of the EU Dairy MCI climbed to EUR 684.9/MT in H1 of 2021, an increase of EUR 110/MT between January and June. Due to higher EU butter prices in the second quarter of 2021, EU butter exports plummeted by 25% between January and April compared to the same period in 2020.
Both SMP and WMP prices of EU Dairy MCI rocketed during the first six months of 2021 due to strong appetite from China and a significant drop in production between January and April, down 6.3% and 11.9% year-on-year respectively.