The GDT dairy index recorded its first negative result in six months this week in New Zealand. Dairy prices from the benchmark index dropped 1.2% this week to an average selling price of $3,414/t (€3,055/t).

Sales volumes were low, with just over 15,500t of product sold at this week’s GDT.

This week’s auction was led lower by falling prices for butter and whole milk powder (WMP). New Zealand butter prices fell 3% this week to $5,300/t (€4,740/t), while WMP prices dropped 2% this week to $3,180/t (€2,850/t).

In contrast, the price of skimmed milk powder (SMP) rose almost 1% to $2,530/t (€2,265/t) at this week’s GDT, while cheddar prices soared 15% to $4,850/t (€4,340/t).

Closer to home, Europe’s dairy market remains generally steady this week. Cheese prices are holding strong across Europe, with cheddar priced at €3,200/t on spot markets, while mozzarella is trading at a very healthy €3,150/t.

Butter prices in Europe fell slightly this week to just over €4,000/t as stocks remain high. European butter is now priced almost €750/t cheaper than New Zealand-sourced butter. European prices for SMP have risen slightly this week to highs of €2,060/t.

ONIL, the government agency in Algeria responsible for buying dairy, recently bought 20,000t of SMP for prices in the region of €2,000/t to €2,050/t. The state buyer also snapped up 30,000t of WMP for just under €3,000/t. This healthy demand is underpinning milk powder markets at the moment.