Spot prices for bulk Irish butter have slipped below €4,000/t this week, as buyers across Europe continue to stockpile product ahead of Brexit day.

Industry sources have described the current stockpiling by retailers, bakeries, food service companies and dairy processors right across Europe as the equivalent of a large number of ‘mini-interventions’.

The increased storage of private stocks of butter is keeping trade moving, but weighing on spot market prices for butter. Bulk butter prices reported this week by the Dutch Dairy Board fell to €4,070/t, while spot market prices for Irish butter are trading below the €4,000/t mark.

In Germany, supermarkets agreed a contract price for butter of €4,120/t for the month of March, which is down on the previous month’s agreed price of €4,480/t.

In New Zealand, the GDT index jumped more than 3% at this week’s auction, with just under 24,000t of product traded. This week’s GDT was led higher by a 6% increase in the average selling price of whole milk powder (WMP) to just over $3,185/t (€2,820/t).

There were also strong gains in price for fat-filled dairy products. Cheddar prices jumped 6% at this week’s GDT to hit $3,890/t (€3,445/t), while butter prices gained 4% to an average selling price of $4,660/t (€4,125/t). This means New Zealand butter prices have moved ahead of European butter prices for the first time in years.

Skimmed milk powder (SMP) prices weakened more than 4% at this week’s GDT to $2,460/t (€2,180/t). This is still more than €200/t ahead of European SMP prices.