Dairy prices fall marginally at latest GDT auction
The latest Global Dairy Trade (GDT) auction resulted in a marginal fall in the overall prices achieved for dairy products. The overall GDT price index declined by 0.5% on the previous auction held on February 6.
Some 20,256MT of dairy products were sold at the event and price increases were noted for whole milk powder (WMP) and butter. However, skimmed milk powder returns declined by 3%.
The previous three auction events held prior to today’s sale had all posted positive returns.
Irish milk prices
Yesterday, the Dairygold board decided to hold the price the co-operative paid for milk supplied in the month of January at 36c/L. This includes both a 0.5c/L quality bonus and VAT.
This is the fifth consecutive month for Dairygold to hold its milk price. The move continues the trend of all processors – so far – holding base milk prices for January.
The board of Aurivo co-op also held its milk price at a base of 35.5c/L including VAT for January manufacturing milk. However, the additional seasonal payment of 1c/L, which was in place last month, has been withdrawn. This is the third month Aurivo has held its milk price.
In addition, Lakeland Dairies decided to hold its base milk price for January supplies. This means that suppliers will get a base price of 35.5c/L including VAT. However, the processor withdrew the 1c/L butter bonus, which had been paid monthly from September to December inclusive.
Furthermore, Kerry will hold its January milk price at 36c/L including VAT; this represents the fifth month in a row that the processor has decided to hold its milk price.
As well as this, it was announced that Kerry will pay a top-up of 0.8c/L including VAT on all milk supplied in 2017 – milk included in fixed milk price contracts will not be eligible for the top-up. This top-up payment is being issued in order to fulfil Kerry’s milk contract commitment.
Earlier this month, Glanbia Ireland announced that it would be holding its milk price for January supplies. It will pay its suppliers 35c/L including VAT for January manufacturing milk supplies at 3.6% butterfat and 3.3% protein.