The Global Dairy Trade (GDT) Price Index has seen yet another boost today (Tuesday, February 14), with its third consecutive 4%-plus increase.
At today’s auction – event 302 – the GDT index finished 4.2% higher than where it was at the previous event on February 1.
This brings the index figure to 1,516, keeping it at highs not seen since 2013.
The average price of product sold today was $4,840/MT, with a total of 27,726MT of product sold.
180 bidders competed across 19 bidding rounds, with 116 winning bidders emerging. The event lasted two hours and 36 minutes.
Of the product types offered at the auction (butter milk powder was absent today), all saw increases.
The skim milk powder (SMP) sub-index put in the strongest showing, increasing by 6% for an average price of $4,295/MT.
Butter wasn’t far behind, increasing by 5.1% for an average price of $6,686/MT. Whole milk powder (WMP) increased by 4.2%, for $4,503/MT.
Cheddar and lactose were neck and neck in terms of sub-index, increasing by 3.5% and 3.4% respectively (average prices were $5,881/MT and $1,609/MT respectively).
Anhydrous milk fat (AMF) put in the most modest performance, increasing in sub-index by 1.2% for an average price of $6,889/MT.
In the 12 GDT auction events since September 7, the index has only failed to increase on two occasions. Today’s result marks the fifth consecutive increase.
Dairy markets are continuing a generally strong trend internationally, with the result that Irish processors are increasing their milk prices to farmers – though the scale of those increases is up for some debate if you were to ask some farm organisations.
Today, Glanbia became the latest processor to announce its milk price for January supplies.
The base price paid to farmers by Glanbia for January milk, along with bonuses (including a new Sustainability Action Payment) will see the potential for a 44.58c/L total price this month.
This overall price comprises a base price of 40.08c/L including VAT on milk at 3.6% butterfat and 3.3% protein.
This is an increase of 0.5c/L from the price for December, which was 39.58c/L.