Mozzarella is another product that, like butter, has experienced a volatile upwards trajectory over the last while. Many felt the sharp increases last year were also an aberration but this prediction didn’t hold out as we yet again saw a big increase over Q2.
Mozzarella prices are now around the €3500/ton mark. While other cheese products also went up in price they didn’t move half as much as Mozzarella. This can mainly be attributed to the fact that Mozzarella is a truly global cheese and demand for pizza is prevalent across every continent. This has left producers scrambling to keep up with supply and the acute shortage was especially felt in May when the prices first started to move. This was very similar to last year when producers were able to name their price and buyers snapped product up without second thought.
The volatility of both butter and mozzarella offer an interesting dynamic into the overall health of the dairy industry. We must ponder if we have fully recovered yet from record low milk prices a few years ago which greatly affected the overall health of the market.