The GDT recorded a slight decline of 0.6% at this week’s auction in New Zealand – the second consecutive fall in the benchmark dairy index. Dairy prices at this week’s auction were led lower by a 1% decline in the average selling price of whole milk powder (WMP) to $3,230/t (€2,605/t).

There were also declines in price across the fats complex as butter prices fell 1% to $5,280/t (€4,255/t), while butter milk powder and anhydrous milk fat prices fell 4% and 3% respectively. However, there was one real positive to this week’s GDT and that was a strong rise in skimmed milk powder (SMP) prices by almost 6% to just over $2,000/t (€1,650/t).

Albeit off a very low base, any upward movement in the skim market is to be welcomed, as poor SMP prices have dogged dairy markets for over a year now.

Overall, dairy markets have held steady this week. In Europe, butter prices fell marginally to around €4,800/t. Reports from Europe this week indicate German retailers have set a butter price of just over €5,000/t for March and April.

On the powder side, SMP prices reported to the Dutch Dairy Board remained on the floor this week around the €1,300/t mark. It will be interesting to see if the bounce in SMP prices at this week’s GDT auction feeds into market sentiment across Europe later this week.

While demand seems healthy, markets are likely to be guided over the coming weeks by spring milk production figures emanating across Europe.

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Dairy trends: butter prices remain strong across Europe

Global Dairy Trade auction down 0.6%