The Global Dairy Trade (GDT) price index has recorded its first gain in two months, climbing by 3.2% as a result of the latest trading event today (Tuesday, April 18).
The index had posted four consecutive falls since the auction held on February 7.
As a result of the last trading event earlier this month, the dairy commodity index took a 4.7% tumble.
During today’s auction, event 330, the average price for products sold today was $3,362/MT.
Although this resulted in a welcome boost, the GDT index is still languishing at levels last seen in 2020.
All of the dairy products offered for sale during the trading event saw increases in average price.
Skim milk powder (SMP) increased by 7% to $2,776/MT and cheddar rose by 5.7% to an average of $4,411/MT.
There was a 4.9% increase for butter to $4,821/MT, anhydrous milk fat (AMF) was up 4.7% to $4,981/MT and whole milk powder (WMP) climbed 1% to $3,089/MT.
Sweet whey powder (SWP), lactose and butter milk powder (BMP) were not offered for sale at today’s event.
In total, 22,713 MT of produce was sold over 19 bidding rounds lasting just over two and a half hours.
GDT
Last week, GDT announced that US dairy processor, Darigold, Inc. will be offering SMP at GDT events from June 2023.
Owned by over 350 dairy farmers in Idaho, Montana, Oregon and Washington, Darigold is one of the largest dairy processors in the US, supplying retail, foodservice, commodity and specialty markets.
Headquartered in Seattle, the co-op processes over 4.5 billion kilograms of milk solids at 11 plants annually, exporting upwards of 40% of its production to customers in more than 30 overseas markets.
Darigold is currently constructing a US$600 million (€549 million) production facility to expand butter and powdered milk products.
When the facility becomes operational in 2024 it will process an additional 3.6 million kilograms of milk solids/day.