Global dairy markets got another shot in the arm this week with the news that the Global Dairy Trade (GDT) auction went up by 3.6% on Tuesday.

The quantity of product traded at the auction was back at just over 22,000t, but prices increased dramatically for butter, anhydrous milk fat, skim milk powder (SMP) and whole milk powder (WMP).

Butter took the biggest leap, increasing by 10.7% and putting the GDT price in euro terms at €5,354/t, which is almost €1,260/t higher than the European price, which is hard to fathom.

This represents a big reversal in fortunes for European butter compared to this time last year when European product was well ahead of the GDT price.

SMP increased by 3%, while WMP increased by 2.5%, which is all very positive. The only real downer from the auction was the drop in the price of cheddar at 1%.

However, it’s also worth noting that even after this drop, GDT cheddar is €600/t higher than the European price.

While Irish dairy co-op executives often scoff at the GDT when it’s going up, I’d say many would be more than happy to take these prices if they were offered to them now.

Meanwhile, European spot market prices stabilised this week, with butter and skim more or less static, although cheddar and WMP did record more substantial increases.

According to German agency ZMB, milk supplies there continue to ramp up, with reports of collections in mid-January being over 5% higher than the same week in 2025. This won’t do the EU milk price any favours.