Another two very bearish weeks in the European dairy market have pushed cheese prices lower and lower. Sellers have accepted lowering prices a couple of weeks ago already and are trying to sell as much as they can in order to prevent cheeses from aging and losing value, as prices keep on decreasing week by week.

The combination of high supply and low demand in all regions keeps prices on this trajectory downwards, with no indication of any changes in either supply or demand any time soon. We are waiting for lowering milk prices to decrease the milk production, or for consumption to pick up again. Although the latter seems unlikely in the coming months.

The fast decrease in cheese prices, especially in Gouda and Mozzarella, have brought us back to historically ‘average’ price levels. Causing us to discuss a question that arises, one we have seen a lot lately; where is this headed?

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