Price index climbs by 3.2% at the latest GDT auction

The price index has climbed by 3.2% at the latest Global Dairy Trade (GDT) auction; meaning there have been five consecutive increases at the most recent events.

This follows on from the price index increasing by 3.6% at the GDT auction at the beginning of the month.

The most recent auction lasted for just over two and a half hours; a total of 553 bidders were registered at the event. There were 109 winning bidders over the course of 19 bidding rounds at the event.

Both Skimmed Milk Powder (SMP) and Whole Milk Powder (WMP) recorded increases of 1% and 1.3% respectively.

The Butter index saw the highest increase of 11.2%, while the price index for Butter Milk Powder (BMP) rose by 7%. Meanwhile, the Cheddar index increased marginally by 0.6%.

Key Results

  • AMF index up 8.2%, average price US$6,631/MT.
  • Butter index up 11.2%, average price US$5,479/MT.
  • BMP index up 7.0%, average price US$1,980/MT.
  • Ched index up 0.6%, average price US$3,726/MT.
  • LAC index up 2.0%, average price US$967/MT.
  • RenCas index down 3.7%, average price US$6,259/MT.
  • SMP index up 1.0%, average price US$1,998/MT.
  • WMP index up 1.3%, average price US$3,312/MT.
Source: GDT

Irish Processors announce April milk prices

A number of Irish processors have recently announced their milk prices for April supplies; announcements from other processors are expected in the coming days.

Earlier today the board of Aurivo decided to set its April milk price at 31c/L. Aurivo dropped the early calving bonus of 1.4c/L. It had been in place for the previous two months.

Yesterday, both Kerry and Glanbia announced that they will hold their milk prices for April supplies, following a similar decision by Lakeland Dairies last week.

Glanbia Ingredients Ireland (GII) held its base price for April at 31c/L including VAT, for manufacturing milk at 3.6% fat and 3.3% protein.

Prior to that, it was revealed that Kerry also decided to hold its milk price for April supplies at 31c/L including VAT.

Last week, Lakeland Dairies was the first processor to announce its milk price for April milk; it decided to hold its milk price at 31.28c/L including VAT.

This was the third consecutive month that Glanbia, Kerry and Lakeland Dairies have decided to hold their milk prices.

Ornua aims to ‘guard’ milk price at 28-32c/L

Meanwhile, Ornua plans to stabilise Irish milk prices after a long period of volatility, the group CEO, Kevin Lane, has revealed.

Lane was speaking after posting the company’s 2016 operational and financial performance early last week.

Ireland’s largest exporter of Irish dairy products delivered a strong trading performance last year, with increases witnessed in turnover, EBITDA and operating profit.

But, Lane added, one of Ornua’s key roles is often “missed or misunderstood”.

Over a 14-month period, milk price has gone from a high of 36-37c/L, down to a low of 22-23c/L and anything in between.

Ornua’s job, Lane said, is to keep the guard rails for the Irish milk price in the 28-32c/L range and to avoid the massive peaks and troughs in the market.

This, he added, can be achieved through the use of risk management, hedging tools, trading expertise, the sale of value-added products and fixed milk price contracts.