The GDT recorded a 3.9% decline at this week’s auction in New Zealand. After a small decline at the last auction of 2016, the benchmark dairy index saw a slightly larger decline at this week’s event.
The average selling price of WMP was back by almost 8% to less than $3,300/t. Skimmed milk powder prices were up by 2.3% to $2,660/t.
Other products to record a decline in average selling prices included anhydrous milk fat (-0.6%), rennet casein (2.7%). The dairy commodities to record an increase in selling price were butter (+0.5%), cheddar (+1.4%) and butter milk powder (+4.5%).
Just under 22,400t of product were sold at this week’s GDT.
First GDT auction of 2017 sees price index drop 3.9% to $3,463. Report to come on @farmersjournal pic.twitter.com/FVcwSdcpse
— Peter McCann (@pmccann_IFJ) January 3, 2017
Commenting on this week's auction IFA National Dairy Chairman Sean O’Leary said the decline would not reduce the scope for further milk price increases. He called on co-op boards to increase prices.
Today’s GDT prices... would yield an Irish milk price equivalent of just over 36c/l before VAT
“Despite the average decrease in today’s GDT index, the price of butter rose by 0.5%, and that of SMP by 2.3%. Today’s GDT prices for those two products would yield an Irish milk price equivalent of just over 36c/l before VAT,” O’Leary said. “With milk output continuing to decrease globally, and demand remaining solid in both developed and emerging countries, I see no reason why co-ops would not have the confidence to increase milk prices, both for December milk, and indeed into the spring."
Dairy trends: NZ milk supply continues sharp decline in November
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