A strong rise in skimmed milk powder and buttermilk powder keeps the index in positive territory, whilst cheddar and milkfat continue to fall.

The latest global dairy auction extends its positive run, marking the fourth consecutive rise in the overall price index. This time, it is chiefly sharp gains in skimmed milk powder and buttermilk powder that keep the index in positive territory, whilst cheddar and milkfat continue to decline.

The price index at the Global Dairy Trade (GDT) auction rose by 0.9 per cent at the auction on 1 September, with the average price closing at €3,372 per tonne.

Skimmed milk powder continues to climb – cheddar dives sharply
Skimmed milk powder (SMP) distinguished itself once again with a rise of 5.3 per cent to an average price of €3,187 per tonne. This follows on from the marked gain at the previous auction on 18 August, when skimmed milk powder rose 7.6 per cent to €3,021 per tonne.

Buttermilk powder (BMP) likewise delivered a strong turnaround, rising 4.6 per cent to €3,567 per tonne, clawing back some of the 3.5 per cent fall recorded on 18 August. Lactose rose 2.0 per cent to €1,647 per tonne, and mozzarella edged up 0.3 per cent to €3,660 per tonne.

At the other end of the scale, cheddar took the sharpest dive, falling 6.6 per cent to €3,021 per tonne, after having risen slightly by 0.6 per cent at the previous auction. Whole milk powder (WMP) was largely unchanged, down 0.1 per cent to €3,092 per tonne.

Continued pressure on milkfat and butter
Milkfat (AMF) continues its downward trend, falling 1.3 per cent to an average price of €5,103 per tonne, following a marked drop of 6.0 per cent on 18 August.

Butter also fell, down 0.8 per cent to €4,336 per tonne. This marks the fourth consecutive auction of decline for the butter price, which also fell 2.0 per cent on 18 August, 2.3 per cent on 4 August, and 0.6 per cent on 21 July.

Steady gains following summer’s decline
The 0.9 per cent rise marks the fourth consecutive positive auction for the GDT index. The gain follows rises of 2.3 per cent on 18 August, 0.1 per cent on 4 August, and 1.5 per cent on 21 July, which together have pulled the market out of the downward trend seen earlier in the summer.

By Maja Løvstrup
Graph: Global Dairy Trade