Farm Ireland

Sunday 25 February 2018

Global Dairy Trade nudges upwards

Margaret Donnelly

Margaret Donnelly

Today's Global Dairy Trade saw the GDT price index up 1.3pc with lactose the main mover.

The results of Global Dairy Trade Event 181 concluded with the GDT Price Index up 1.3%.

The key results from the auction today:

AMF index up 4.0%, average price US$5,765/MT

Butter index up 4.9%, average price US$4,593/MT

BMP index down 7.5%, average price US$2,254/MT

Ched index down 3.7%, average price US$3,798/MT

LAC index up 12.4%, average price US$910/MT

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RenCas index down 0.4%, average price US$6,445/MT

SMP index up 0.1%, average price US$2,608/MT

WMP index up 1.0%, average price US$3,314/MT

GDT feb 7 2017.PNG
It comes after a slight rise of 0.6pc in the GDT from January 17. That result saw Anyhdrous Milk Fat up 3.7pc; butter up 1.6pc; and butter milk powder up 10.1pc, while whole milk powder was down 0.1pc.

Again prior to that in the first auction of the year, prices slipped for the second time in a row with the GDT Price Index down 3.9pc.

Of note was a substantial fall in Whole Milk Powder (WMP) prices which fell over 7pc.

Global dairy prices had surged, particularly since July 2016.

IFA National Dairy Committee Chairman Sean O’Leary said today's GDT 1.3pc price increase had come as a surprise to commentators, but clearly showed that buyers were conscious of the rapidly falling global milk availability.

Meanwhile, EU average market returns for dairy products continued steady at high levels, he said.

“Most co-op boards will be meeting this week and next, to examine milk prices payable for January. They must make sure the new increased 5.4pc VAT rate benefits the farmers fully, and pass back a fully justified increase of at least 1c/L – more for the lower payers including Kerry – back to support their milk suppliers’ essential income recovery before peak.”

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