The Global Dairy Trade (GDT) index decreased by 1.4% in the latest trading event yesterday (Tuesday, October 21), marking the fifth decrease in a row.

The last time the index (which is usually updated every two weeks) saw an increase was August 5, when it increased by 0.7%.

Each trading event since then has resulted in the index being revised down, with the biggest drop being a 4.3% decrease on September 2.

The latest trading event saw an average price of €3,300 per metric tonne (mt).

The index figure now stands at 1,180, the lowest point the index has been at since October last year.

A total of 40,621mt of product was sold at the event, with 165 bidders participating.

117 winning bidders emerged across 18 bidding rounds in the two hour and 10 minute event.

Looking at the individual sub-indices for each product, Mozzarella took the biggest hit, with its index falling by 5.3%, reflecting a price of €2,771/mt.

Most other products also saw decreases in their respective sub-indices, with whole milk powder (WMP) decreasing by 2.4% for a price of €3,097/mt; while the cheddar index decreased by 1.9% for an average price of €4,082/mt.

For skim milk powder (SMP), the index fell back by 1.6% for a price of €2,196/mt; while the butter index decreased by 0.8% for a price of €5,716/mt.

The only product to record an increase was anhydrous milk fat (AMF), with its index increasing by 1.5% for a price of €6,039/mt.

No results were available for butter milk powder after this GDT event, while lactose was not offered at the event.

Milk prices

The decrease in the GDT comes at a time when milk prices being paid to Irish farmers are dropping sharply.

This month has seen the major processors pull back their prices to farmers.

Most recently, Tirlán confirmed it will pay farmers 42.08c/L, including VAT, for September milk at 3.6% butterfat and 3.3% protein.

The September milk price consists of a base milk price of 41.58c/L, a reduction of 4c/L from August; and a Sustainability Action Payment of 0.5c/L, including VAT, to all qualifying suppliers.

Also this week, Dairygold reduced its September quoted milk price by 3.75c/L to 41.25c/L, based on standard constituents of 3.3% protein and 3.6% butterfat.

The Dairygold price is inclusive of sustainability and quality payments as well as VAT.