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.
Key results
- 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
Recovery in powder prices welcomed
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.