Global Dairy Trade sees fourth rise in succession as Irish co-ops hold their milk price
The second GDT (Global Dairy Trade) event of the year has seen prices rise for the fourth time in succession and has signalled a positive start to 2019 as Irish co-ops hold their milk price quotes.
The latest event saw the price index rise by 4.2pc, with Skim Milk Powder (SMP) and Lactose driving the lift in price this week.
SMP prices were up 10.3pc and Lactose was up 7.9pc. Butter prices increased by 4.6pc while Cheddar and Anhydrous Milk Fat lifted by 4.3pc and 3.2pc respectively. Whole Milk powder increased by 3pc.
Just over 27,909 tonnes of product was sold at the auction.
Stronger demand for skim milk powder (SMP) has steadied global dairy markets ahead of Europe's spring calving season.
Spot market prices for SMP topped €1,800/t last week and stocks are expected to break the €2,000/t threshold over the next month on the back of lively buying of dairy proteins by traders.
The improved market outlook was reflected in the decision of both Glanbia and Lakeland Dairies to hold milk prices for December supplies at 32c/l and 32.06c/l (including VAT) respectively.
Lakeland Dairies will also pay an extra 5c/l Voluntary December Bonus to qualifying suppliers, based on peak to trough supply ratios. The co-op reported that milk supplies for December were up 17pc compared to 2017.