After a flat auction last week, there have been positive price moves at this week’s Dutch dairy auction. Whole milk powder rose sharply by 3% on last week to €3,050/t, a three-year price high.

Skimmed milk powder recorded no change in price, holding at €1,740/t. SMP prices had fallen at the last five Dutch auctions, moving from a recent high of €2,000/t, to now hovering around intervention prices.

After no change to butter prices last week, there has been a 0.81% price rise to €6,190 on Wednesday.

Latest spot prices for raw milk now stand at 39.5c/l.

MPI

The latest Ulster Farmers’ Union milk price indicator (MPI) has also risen, up by 0.7p/l from earlier in the month and now stands at 32.22p/l. The price does not factor in transport or processing costs but, nonetheless, it reflects the current strength of demand for key dairy commodities.

In the Republic of Ireland, the Ornua milk price index for June rose to 110 which converts to a farmgate price of 31.42c/l or a sterling equivalent of 27.96p/l.

Global milk production during May is 0.3% higher than last year. This figure falls short of forecasted supplies. Global milk production during May totalled 118.8bn litres, up by 353m litres on last year.

Production within the EU has fallen in France and Germany due to weather related issues, but this has been offset by higher production in Ireland, Poland and Spain.