Price index jumps by 3.1% at the latest GDT event
The latest Global Dairy Trade event has seen the price index for dairy products jump by 3.1%, following on from an increase of 1.6% at the previous auction.
Skimmed Milk Powder (SMP) recorded the largest increase, climbing by 7.1%. Whole Milk Powder (WMP) also saw its price index rise by 3.5%.
An increase of 2.9% was seen in the Butter price index, while the Cheddar price index rose by 6%.
Lasting for just over two hours; a total of 541 bidders were registered. There were 130 winning bidders across the 14 bidding rounds.
- AMF index down 0.5% – average price US$5,930/MT
- Butter index up 2.9% – average price US$4,892/MT
- BMP index not available – average price US$1,720/MT
- Ched index up 6.0% – average price US$3,462/MT
- LAC index up 1.2% – average price US$935/MT
- RenCas index down 3.8% – average price US$6,020/MT
- SMP index up 7.1% – average price US$2,044/MT
- WMP index up 3.5% – average price US$2,998/MT
The recovery in powder prices at today’s auction was welcomed by the IFA’s National Dairy Committee Chairman Sean O’Leary.
The GDT price for butter and SMP would return a gross of 37.3c/L before processing costs of 5c/L were deducted. This would be the equivalent of a milk price of 32.3c/L plus VAT, or 34c/L including VAT, in Irish terms – according to the IFA.
The most recent available EU average market prices quoted by the Milk Market Observatory for April 9 show a stabilisation in EU SMP prices at around €100/t above intervention, O’Leary said.
A slight easing of WMP and cheddar prices was also recorded; butter and whey powder prices have lifted consistently for the last couple of weeks, he added.
“Assuming an Irish product mix, these prices would return a gross of 36c/L, or a milk price equivalent of 31c/L plus VAT (32.7c/L including VAT) after 5c/l processing costs are deducted,” he said.