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European dairy commodity markets saw swignificant price pressure during the final quarter of 2022.
At the weekly Dutch Dairy Board (DDB) auction, butter fell from highs of €7,220/t in August to its current value of €5,050/t on 28 December. Dutch butter price has now fallen for 14 consecutive weeks and finishes 2022 over €1,000/t below the price at the start of the year. Skim milk powder (SMP) reached records highs of €4,240/t back in April, but eased back to €3,650/t by September before dropping to €2,780/t on 28 December.
It finishes the year around €700/t below early January levels.
Whole milk powder (WMP) also peaked at record levels of €5,190/t in April, but is now at €3,970/t, which is €300/t below January 2022 prices.
The New Zealand GDT auction has also seen downward price trends during the final quarter of 2022. The index price finishes 2022 on 1,060, down 26% when compared to the start of the year.
MPI
The latest UFU milk price indicator (MPI) ends 2022 on 42.41p/l, which is almost 3p/l ahead of the same period last year, but 6p/l below its equivalent value in late summer.
While trends in markets point to lower farmgate prices this spring, some market analysts are hopeful that the end of coronavirus restrictions in China will see an upturn in buying demand, which will boost commodity prices.
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