The latest global dairy auction brought the third consecutive rise in the overall price index, driven by strong gains for skim milk powder and mozzarella. Milkfat, however, recorded the sharpest fall of all products.
The price index at the global dairy auction platform GDT (Global Dairy Trade) rose 2.3 per cent at the auction on 18 August, with the average price ending at €3,341 per tonne.
Skim milk powder rose the most of all products at the auction, up 7.6 per cent to an average price of €3,021 per tonne. This marks a sharp acceleration compared with the previous auction on 4 August, when skim milk powder rose 1.2 per cent to €2,827 per tonne. Mozzarella followed the same pattern, rising 6.1 per cent to €3,652 per tonne, against a 1.0 per cent rise to €3,461 per tonne on 4 August.
Whole milk powder and lactose also gained ground: whole milk powder rose 3.0 per cent to €3,098 per tonne, whilst lactose rose 3.2 per cent to €1,559 per tonne — a slowdown compared with the 4.1 per cent rise to €1,543 per tonne on 4 August. Cheddar edged up 0.6 per cent to €3,230 per tonne, following a 3.8 per cent rise at the previous auction.
Sharp fall in milkfat
Anhydrous milk fat (AMF) recorded the sharpest fall of any product, down 6.0 per cent to an average price of €5,170 per tonne — a marked deterioration compared with the previous auction, when AMF fell 0.8 per cent to €5,520 per tonne. Butter fell 2.0 per cent to €4,391 per tonne, the third consecutive auction of declines for the product, which also fell 2.3 per cent on 4 August and 0.6 per cent on 21 July. Buttermilk powder fell 3.5 per cent to €3,927 per tonne, against a 2.8 per cent fall at the previous auction.
Third consecutive rise
The 2.3 per cent increase marks the third consecutive rise for the GDT Price Index, following a 1.5 per cent rise on 21 July and a 0.1 per cent rise on 4 August. This follows three consecutive auctions of declines over the summer: down 0.6 per cent on 2 June, 2.8 per cent on 16 June and 4.9 per cent on 7 July.
Denmark, too, has seen continued gains. Arla has raised its advance price for conventional milk over the past two months by 1.5 and 1.0 euro cents per kilogram respectively, bringing the current advance price to around €0.43 per kilogram.
By Maja Løvstrup
Graph: Global Dairy Trade
