Gloabl dairy markets appear to have stabilised at their current low level, based on the latest Global Dairy Trade auction run by Fonterra.

There was no change in the overal price index, a welcome change after five consecutive price falls and price drops in 10 of the last 11 auction events.

A total of 50,801 tonnes of product was sold at an average price of $2,795 per tonne. Whole milk powder, a key product in the GDT, sold for 0.6% higher than the previous event, with the price of $2,692 per tonne proving attractive to buyers. Product bought at this auction could be shipped to China in January, incurring lower tariffs. Skilm milk powder (SMP) gained 0.9% to average $2,619/tonne. Butter in contrast fell by 2.5% to $2,698 per tonne.

The index peaked at 1,482 in early February and is now at 822 - the same level as August 2012.

It is important to note that the GDT is a spot commodity auction - contracted products for regular customers would be expected to trade at higher prices.

At present, New Zealand co-op Fonterra is forecasting a milk price of $6 per kg of milksolids - around 27 cent per litre at Irish equivalents.