Strong demand continues to underpin dairy markets, with prices up again at the final Dutch Dairy Board auction for 2021.
Butter increased by €70 to €6,070/t, and has now gone up in 21 out of the last 23 weeks going back to late July.
Skim milk powder rose by €80/t to €3,450, with whole milk powder up by €30/t to €4,270.
Those increases are reflected in the latest UFU Milk Price Indicator (MPI), which is now at a record high of 39.84p/l, a 1.27p/l increase from early December.
Allowing 3p to 4p/l to cover processor costs and margins, the MPI points to farmgate milk prices in excess of 35p/l during the first quarter of 2022.
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