Dairy markets received a real momentum boost this week after the latest Global Dairy Trade (GDT) auction surged almost 7%, driven by a strong increase (+10%) in the selling price of whole milk powder (WMP). Skimmed milk powder prices also increased 2% but remain just above intervention price levels.

Having been in the doldrums since last October, this week’s GDT auction indicates the beginnings of a revival in milk powder prices may finally be in motion.

Last week, the US Department of Agriculture hinted there were early signs of improvement in milk powder markets but warned skimmed milk powder will remain a drag on prices due to huge overhanging stocks.

ICMSA dairy chair Gerald Quain called on milk processors to reflect the improvement in dairy markets in farmgate milk prices.

The IFA’s Sean O’Leary called on co-ops to take stock of improving market returns and acknowledge the worsening severity of the cashflow situation on their dairy farmer members.