Global dairy markets continue to slide after poor results for dairy commodities from New Zealand and Europe this week.

Results from the latest Global Dairy Trade (GDT) auction indicate that the average product price fell by 5.9%, to $2,276/t. This is the eighth consecutive drop in the auction and leaves dairy prices at their weakest since 2009, with significant falls for most products across the board.

Whole milk powder (WMP) was the biggest faller, down 10.8%, to a quoted level of $2,054/t, while skim milk powder (SMP) was also back, down 5.8%, to $1,875/t. Casein fell 4.1%, to $5,901/t.

Butter milk powder fell by 8.1%, to $1,878/t, while cheddar prices decreased by 4.9%, to $3,060/t.

These latest results will come as a blow after there were signs at the previous GDT auction, held two weeks ago on 17 June, that dairy prices in the southern hemisphere had been stabilising, with an improvement in price across some product categories.

Closer to home, official Dutch quoted prices for dairy commodities have slipped more sharply in the past week, with WMP down by €50/t, to a quoted level of €2,220/t and boxed butter down by €40/t, to reach €2,940/t.

SMP prices dropped by €10 and €20 respectively to bring food-grade SMP to €1,720/t and feed-grade SMP to €1,610/t.

These falls in price follow a drop of €30/t the previous week for WMP and €20/t for SMP (feed). Trade sources indicate that SMP is so close to the EU floor support level that sales into intervention are probably inevitable.