Average dairy prices lifted 1% at this week’s GDT auction in New Zealand thanks to a sharp rise in the price of skimmed milk powder (SMP). After falling sharply since late January, SMP prices rebounded strongly at Tuesday’s GDT event.

Average prices for SMP shot up 7% on the benchmark dairy index to hit $2,550/t (€2,330/t), which is almost €350t ahead of European SMP prices. In contrast, prices for whole milk powder (WMP) dropped slightly (-0.5%) to just under $2,680/t (€2,450/t).

On the fats side, butter prices at this week’s GDT dropped 2% to just over $3,800/t (€3,480/t), while the price of anhydrous milk fat increased 3% to $4,080/t (€3,730/t). New Zealand cheddar prices fell sharply this week by 6% to hit $3,865/t (€3,535/t).

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Less than 17,000t of dairy product were sold at this week’s GDT auction in New Zealand. New Zealand milk supplies have tightened considerably over recent weeks due to drought conditions and the end of their milking season is fast approaching.