Decline in global dairy price index at GDT continues for last 90 days now

Global dairy price index declined in sixth consecutive fortnightly session after April 6th . The price of AMF , Butter and SMP have declined from USD 6209 USD 5776 and USD 3367 per MT; to USD 5632, USD 4458 and USD 3126 per MT respectively in last 90 days. Cheddar Cheese and Lactose have declined from USD 4393 andUSD 1307 per MT; to USD 3949 and USD 1238 per MT respectively. Cheddar Cheese , Butter milk powder and Skimmed milk powder saw the greatest decline of 9.2%,9.8% and 7% respectively.

Not a good news

This news is not good for India as the industry hoped to export the huge-stocks or SMP-Butter for better realization. Converting these prices to Indian Rupees, SMP is priced at around Rs 225 per Kgs . The conversion cost of SMP in India itself is higher than it . Selling SMP at less than Rs 250 for buffalo and below Rs 240 for cow milk may not be profitable.

Butter prices at Rs 325 per Kgs in global market is attractive as against around Rs 245-250 per kgs in Indian market . The challenges of availability of refrigerated containers and their costs might become an impediment in exports of Butter in large quantities.

Currently the SMP and Butter in South India from Cow’s source is being sold at around 205-215 and Rs 245-Rs 250 per kgs respectively. In North India SMP and butter made from buffalo milk is available at around Rs 230-240 per kgas and Rs 260-270 per kgs respectively. Everyone is hoping to have a nice festival season as ghee stocks are still limited. The stocks of SMP is touching 3 lakh MT while butter is also over 100000 MT. The fall of global market is going to weaken the market sentiment during this festival time.