GDT: Dairy prices up again with 1.9% increase

Farmers woke up to good news this morning as prices climbed again in the latest Global Dairy Trade auction, held overnight, with a 1.9% increase across the board.

This follows a 4.8% jump from the previous event two weeks ago.

Whole milk powder — which has the biggest impact on Fonterra’s farmgate milk price — recorded the largest increase with another solid lift, rising 3.2% to an average of US$3826/MT.

This is further good news for dairy farmers, as it builds on the 4.4% jump for whole milk powder from the last auction.

Skim milk powder — Fonterra’s second-biggest reference product — rose a modest 0.9%, to an average of US$2882/MT.

This follows a 4.0% increase at the previous event.

Butter was up 0.5% to an average of US$7008/MT, after stealing the show two weeks ago with an 8.3% leap.

Anhydrous milk fat rounded out the positive reference products - up 1.0% to an average of US$7622/MT. It jumped 4.6% previously.

On the negative side, cheddar dropped 3.1% to an average of US$4834/MT, after rising 4.0% last time.

The biggest percentage fall came from mozzarella, which tanked 6.6% to an average of US$4315/MT.

This continues mozzarella’s rollercoaster ride with a 0.9% at the previous auction, an 8.2% crash in the one before that, and a 7.7% nosedive the one before that.

Butter milk powder and lactose were not available at this event.

A total of 36,244 MT of product was purchased by 106 successful bidders, compared to 36,595 MT and 112 winning bidders last time.