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Prices slip again at Global Dairy Trade auction

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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.

Key Results

  • 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.

“With dairy markets remaining strong, there is scope for further milk price increases for Irish dairy farmers for this month’s milk and the coming months’,” O’Leary said.

Online Editors