Price index at latest GDT auction reports second consecutive increase

The price index at the latest Global Dairy Trade (GDT) auction has reported its second consecutive increase today, rising by 0.9%.

On September 5, the index rose by 0.3%. This followed on from decreases of 0.4% and 1.6% at the two GDT events in the month of August.

At today’s auction, the price index for skimmed milk powder (SMP) fell by 1.2%. On the other hand, whole milk powder (WMP) climbed by 0.6%. There was no butter milk powder (BMP) offered at today’s event.

The cheddar index fell by 1.9%, while an increase of 1.2% was recorded in the butter index.

Key Results:
  • AMF index up 5.3%, average price US$6,764/MT;
  • Butter index up 1.2%, average price US$6,026/MT;
  • BMP not offered;
  • Ched index down 1.9%, average price US$4,032/MT;
  • LAC index down 3.8%, average price US$759/MT;
  • RenCas index down 2.4%, average price US$6,036/MT;
  • SMP index down 1.2%, average price US$1,920/MT;
  • WMP index up 0.6%, average price US$3,122/MT.

There was a total of 134 winning bidders recorded across 17 bidding rounds. The event lasted for approximately two hours and 20 minutes.

GDT
Image source: GDT

Irish milk prices and Ornua’s PPI

Several milk price increases were announced by a variety of processors in recent weeks for August milk.

Aurivo suppliers will receive a base price of 35.5c/L for August supplies, following an increase of 1c/L. The processor also announced plans to pay a 1c/L bonus to its suppliers on top of the base price for last month’s supplies.

Arrabawn increased its August milk price to 36c/L including VAT – representing an increase of 1c/L. Meanwhile, a 1.5c/L milk price increase was announced by Dairygold. This increase will bring the processor’s base milk price to 36c/L, including a 0.5c/L quality bonus and VAT.

Other processors also announced milk price increases. These increases come in a month where Ornua’s Purchase Price Index (PPI) recorded an increase of 0.9 percentage points.

The PPI for the seventh month of the year equated to 110.1%; this increased to 111% for August. This increase represents the fourth consecutive increase reported in Ornua’s PPI since April.