Butter and skim milk powder prices plummeted at this week’s Dutch Dairy Board auction (DDB), which is probably the best indicator of European markets.

With the EU in lockdown due to COVID-19, butter prices fell by €500 to €2,700/t, putting it at its lowest value since June 2016. Butter has now been in steady decline from a 2020 highpoint of €3,570/t.

Skim milk powder fell by €170 to a 12-month low of €1,850/t, down from €2,640/t in early February. Whole milk powder was unchanged at €2,670/t and is currently at its lowest level since April 2018.

Lower EU prices have impacted on the milk price indicator (MPI) published by the Ulster Farmers Union, with the latest figure falling 2.39p to 27.47p/l.

Further afield, the first GDT auction for April did result in the index price rising 1.2% to US $2,969/t with gains for butter, cheddar and whole milk powder. However, this result has little impact on European markets.

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Butter and skim crash at DDB auction

At this week's Dutch Dairy Board auction, butter and skim milk powder were hit by a sharp drop in demand