---
title: German liquid dairy prices continue to decline sharply
description: German liquid dairy prices continue to decline sharply
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# German liquid dairy prices continue to decline sharply
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December 23, 2022
1 mins read
The German milk price continued its sharp fall during this week’s assessment period (15th of December 2022 16:00 BST – 22nd of December 2022 15:59:59 BST), as market sentiment stayed bearish for the third consecutive week. The decline was primarily supported by decreasing processing capacity as key processors prepared for the upcoming Christmas holiday. Limited staff availability, as well as company closures over the holiday period for maintenance, are the main reasons for the reduced processing capacity. This led to a reduction in demand as typical buyers of spot milk are now looking to sell surplus volumes. Further bearish pressure was added to the market as milk intakes increased during the past two weeks, adding availability to the market. The MBP for Milk EXW Germany [Mintec Code: ED24] was assessed at €0.37/kg on 22nd December, down 12% on the week.
One market source stated, “The decline of liquid prices was seasonally expected. Every year, processors get caught with a surplus of milk that needs to be moved on the spot market which then leads to a price collapse. We anticipate that prices will recover again during the first couple of weeks of 2023. However, it seems unlikely that we’ll see prices coming back close to €0.60/kg.”
Market sentiment for German cream also remained bearish during this week’s assessment period. While buying interest continues to decline strongly, supply has increased. Similar to the milk market, several large processors still needed to move volumes before holiday closures, driving prices lower. With other dairy fat prices like butter and AMF also declining significantly, there is still pressure on cream prices. Even following the recent price decrease, it is more profitable to sell cream directly instead of processing it into butter. As long as this state of affairs persists, multiple market sources are expecting further price drops. The MBP for German Cream EXW 40% [Mintec Code: JR92] decreased by €0.65/kg on the week to €5.00/kg.
Topics: [Dairy & Eggs](https://www.mintecglobal.com/top-stories/tag/dairy-eggs)
Sandro Schulz
EMEA Protein Team Lead
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