Kerry Group has today (Wednesday, January 17), become the latest processor to announce its price paid for milk supplied in December.
The processor will pay 36c/L, including VAT, for milk supplied last month at 3.30% protein and 3.60% butterfat.
The December milk price at EU standard constituents of 3.4% protein and 4.2% butterfat is 39.5c/L, the processor said.
Kerry Group
Based on Kerry Group’s average milk solids for December, the milk price return inclusive of VAT and bonuses is 45.5c/L.
“Despite the observed strength in commodity dairy markets towards the latter part of 2023, the markets continue to seek a definitive trajectory in 2024.
“The prevailing uncertainty primarily revolves around the demand outlook, with a particular emphasis on the dynamics within the Chinese market,” a Kerry Group spokesperson said.
Global Dairy Trade
Meanwhile, the Global Dairy Trade (GDT) price index has continued its upward trajectory following the second trading event of 2024 yesterday (Tuesday, January 16).
The index increased by 2.3% to stand at 1,061. This is the fourth consecutive increase for the index, however, it is still considerable down from 1,593 recorded in March 2022.
In total 24,909MT was sold at an average price of $3,493/MT. Anhydrous milk fat, butter, cheddar, lactose, mozzarella, skim milk powder (SMP), and whole milk powder (WMP) were offered.
All products, except for mozzarella, recorded an increase in average price at the auction. Butter had the most significant increase in average price, rising 5.8% to $5,906/MT.
Anhydrous milk fat was up by 4.3% to $5,842/MT and WMP rose by 1,7% to $3,353/MT. There was a 1.2% rise in the price of SMP to $2,638/MT, while lactose increased by 1.3% to $760/MT.
The auction resulted in a 1% increase in the average price for cheddar at $4,217/MT, but mozzarella was down 3.3% to $3,830/MT.