Price index falls by 0.4% in most recent GDT auction

The overall price index at the latest Global Dairy Trade (GDT) event held today, August 15, decreased by 0.4%.

The results from the latest GDT event follow on from an overall price index drop of 1.6% at the auction held on the first day of this month.

This came after the index returned to positive figures at the GDT event on July 18, increasing by 0.2%. Prior to that, two consecutive decreases of 0.4% on July 4 and 0.8% on June 20 were recorded.

Despite the overall price index fall, some of the categories on offer actually posted increases. Rennet Casein (RenCas) prices improved by 2.9%, cheddar posted a 1.4% rise and skimmed milk powder returns showed a marginal price increase of 0.3%.

Key results:
  • AMF index down 1.2%, average price US$6,199/MT;
  • Butter index down 1.3%, average price US$5,735/MT;
  • Ched index up 1.4%, average price US$4,005/MT;
  • LAC index down 4.9%, average price US$747/MT;
  • RenCas index up 2.9%, average price US$6,255/MT;
  • SMP index up 0.3%, average price US$1,968/MT;
  • WMP index down 0.6%, average price US$3,143/MT.

In addition, lactose (LAC) fell by 4.9% – the biggest decrease on the day – and no butter milk powder (BMP) was offered at the fortnightly auction.

Image source: GDT

Milk price increases

In recent days, a number of processors have decided to up the prices paid for July milk at 3.6% butterfat and 3.3% protein.

Yesterday, Kerry announced that it will pay its suppliers a base price of 34.5c/L including VAT for milk collected last month – an increase of 1.5c/L.

Last week, both Glanbia and Lakeland Dairies announced their decisions to up their respective milk prices by 1c/L.

Suppliers of both of these processors will receive a base price of 34c/L, VAT inclusive, for milk collected during the seventh month of the year.

Other processors are expected to announce their milk July milk prices in the coming days.