Prices slip again at Global Dairy Trade auction
Prices slipped for the second time in a row at today’s Global Dairy Trade (GDT) auction with the GDT Price Index down 3.9%.
Of note was a substantial fall in Whole Milk Powder (WMP) prices which fell over 7%.
Prices also dipped marginally at the final Global Dairy Trade auction of 2016 with overall prices falling 0.5%, with WMP prices falling 0.8%.
Global dairy prices have surged, particularly since July.
For example, after trading at very low levels over the first half of 2016, WMP prices jumped over 76% over the final six months.
- AMF index down 0.6%, average price US$5,352/MT
- Butter index up 0.5%, average price US$4,308/MT
- BMP index up 4.5%, average price US$2,670/MT
- Ched index up 1.4%, average price US$3,894/MT
- LAC index down 2.9%, average price US$836/MT
- RenCas index down 2.7%, average price US$6,234/MT
- SMP index up 2.3%, average price US$2,660/MT
- WMP index down 7.7%, average price US$3,294/MT
According to the Irish Farmers Association, there is scope for further increases in milk prices in the coming months.
IFA National Dairy Chairman Sean O’Leary says that Irish co-ops have increased their milk prices by an average of 5.5c/L in the last five months, however he also highlights that over the same period, two of the largest European co-ops, Arla and Friesland Campina, increased their prices by 7.5c/kg and 12.5c/kg respectively.