Dairy product prices rose again at the most recent Fonterra Global Dairy Trade auction.
The event represents the second positive auction for prices in a row after prices rose last month for the first time since March 2015 after 10 negative auctions.
Average prices paid at the latest Global Dairy Trade auction rose 10.9% on the last event held two weeks previously which itself was up 14.3%.
The only casualty at the latest auction was Lactose (LAC) down 4.0%, while Butter Milk Powder (BMP) increased by 30.0% and Skimmed Milk Powder (SMP) was up by 11.7%.
- AMF index up 11.7%, average price US$3,029/MT.
- Butter index up 8.1%, average price US$2,746/MT.
- BMP index up 30.0%, average price US$1,829/MT.
- Ched index up 4.7%, average price US$2,913/MT.
- LAC index down 4.0%, average price US$483/MT.
- RenCas index up 6.3%, average price US$5,779/MT.
- SMP index up 11.7%, average price US$1,698/MT.
- WMP index up 12.1%, average price US$2,078/MT.
World Milk Production
At world level, milk production increased by some 825,000t in the first five months of the year, mainly due to the US, according to figures from the Milk Market Observatory (MMO).
However, it says latest figures about US milk production in June show a less dynamic increase (+ 0.7%).
Milk production is also increasing in China, Russia and Belarus, it says. Meanwhile the MMO says world exports are decreasing, reflecting demand slow down
Falling milk prices have failed to dampen Irish milk production with creameries and pasteurisers taking in 12.2% more milk in July 2015 compared to 2014, the Central Statistics Office (CSO) has said.
Domestic milk intake by creameries and pasteurisers was estimated at 772.0m litres for July 2015, the CSO figures show.
Comparing the July 2015 milk produce figures with those for July 2014 shows that total milk sold for human consumption increased by 8.4% to 43.1m litres.