Prices drop at latest GDT auction, following six consecutive increases

Prices have dropped slightly at the latest Global Dairy Trade (GDT) auction; a decrease of 0.8% was recorded at today’s event.

This is the first decrease recorded at a GDT event since March 7, 2017. A total of six consecutive increases have been recorded since then.

There was a total of 111 winning bidders, over the course of 21 bidding rounds; the event lasted for nearly three hours.

The skimmed milk powder (SMP) price index climbed by 1.4%, while the whole milk powder (WMP) index fell by 3.3% at the latest auction.

An increase of 2.9% was recorded in the butter index and cheddar decreased by 3.8%. No butter milk powder (BMP) was offered at today’s event.

Key Results:

  • AMF index up 4.4%, average price US$6,885/MT;
  • Butter index up 2.9%, average price US$5,768/MT;
  • BMP not offered;
  • Ched index down 3.8%, average price US$4,121/MT;
  • LAC index down 11.1%, average price US$869/MT;
  • RenCas index down 8.0%, average price US$6,104/MT;
  • SMP index up 1.4%, average price US$2,218/MT;
  • WMP index down 3.3%, average price US$3,022/MT.

Source: GDT

Co-ops ‘short-changed’ dairy farmers for May milk

As May milk prices were set in the last few weeks, the Irish Creamery Milk Suppliers’ Association (ICMSA) has come out and criticised processors for “short-changing” their farmer suppliers.

Although international markets were strong enough to deliver a producer price of 33c/L, most processors only decided to up their base milk price for May to 32c/L including VAT, the ICMSA’s Dairy Committee Chairman, Gerald Quain, said.

Speaking after both Glanbia and Lakeland Dairies announced plans to increase their May milk price by 1c/L – to 32c/L including VAT – Quain claimed that Irish processors have consistently paid prices below those that have been on offer in other EU countries, the US and New Zealand.

The co-ops actually had the reserves to pay farmers a 33c/L price in May.

May is, in reality, a five-week supply month for dairy farmers, he added; it is also the month of peak milk output on almost every dairy farm

Other farm organisations had called for a milk price increase of at least 2c/L for milk produced in May, prior to processors announcing their milk prices in recent days.