Market participants continue to anticipate a more significant market recovery in the second half of 2023, reflecting slowing milk growth and expectations that some buyers on the global market will have to restock once they realise prices have bottomed.

EU dairy product prices are firming in the short-term despite milk supplies seasonally heading to their peak. Gouda and mozzarella cheese are quoted at €3,330/t and €3,050/t respectively, despite some anecdotal reports that inventories are plentiful, and buyers are well covered into Q3-23. SMP (food) is now quoted at €2,400/t with most volumes at the recent ONIL (Algeria) tender coming from Poland. Meanwhile, cream quotes have jumped sharply to €4,950/t (and butter to €4,700/t) – our sources confirm offers are more plentiful than bids.