The upward trend has continued at the latest Global Dairy Trade (GDT) auction; the price index increased by 0.6% at today’s event.
The last time a decrease in the price index was recorded at a GDT auction was on March 7, 2017; six consecutive price increases have been recorded since then.
At the previous three GDT auctions, the price index has climbed by over 3% each time.
A total of 563 bidders were registered at the most recent GDT event, which lasted for close to two and a half hours; there were 125 winning bidders across the 16 bidding rounds.
The Cheddar index recorded an increase of 14.5% at the latest auction; the highest increase recorded at the event.
Skimmed Milk Powder (SMP) recorded an increase of 7.9%, but Whole Milk Powder (WMP) dropped by 2.9%. The Butter index rose by 3.3% and the Butter Milk Powder (BMP) index increased by 5.8%.
- AMF index down 1.2%, average price US$6,569/MT
- Butter index up 3.3%, average price US$5,631/MT
- BMP index up 5.8%, average price US$2,092/MT
- Ched index up 14.5%, average price US$4,285/MT
- LAC index up 1.0%, average price US$971/MT
- RenCas index up 4.8%, average price US$6,849/MT
- SMP index up 7.9%, average price US$2,156/MT
- WMP index down 2.9%, average price US$3,143/MT
Source: GDT
Calls for a 2c/L milk price increase
Meanwhile, the Irish Farmers’ Association (IFA) recently claimed that there is scope for a milk price increase, of up to 2c/L, to be announced for May supplies.
Historically high butter prices internationally, as well as more modest uplifts in the prices of other dairy commodities, have created a situation where Irish co-ops could increase farm-gate milk prices, the Chairman of the IFA’s National Dairy Committee, Sean O’Leary, said.
Higher EU-average market prices, bullish GDT auctions, rising spots and futures have all created the conditions to allow for a May milk price lift, of up to 2c/L, for Irish farmers, he said.
“Static Irish prices into April average out around 31.6c/L including VAT, but EU returns at the end of May would support a farm-gate price of 34.7c/L including VAT,” he added.