The bad news keeps coming for dairy markets, with further substantial price cuts for butter, cheese and whole milk powder (WMP) in Europe.
The news wasn’t much better at the Global Dairy Trade (GDT) auction, which saw the index fall by 3% on over 38,000t of product sold.
Fats took the biggest hit on the GDT, with butter dropping in price by 7.6% and butter oil (anhydrous milk fat) dropping by 5%.
WMP also took a wallop, dropping by 1.9% to reach €2,978/t. Cheddar fell by 2.8% while mozzarella fell by 2.7%.
On the protein side, the picture was a bit better, with skim milk powder (SMP) only falling by 0.6%.
In Europe, prices for SMP actually increased this week by €15/t, which isn’t much, but the only price increase in dairy that we’ve seen for a while.
Apparently, the drop in prices has made SMP a bit more affordable in many destinations, so there is increased demand for it.
In Europe, butter continued its slide downwards, falling by €115/t to reach €4,785/t this week. There was bad news for cheese too, as cheddar fell by €180/t to €3,285/t, while WMP fell by €50/t to €3,275/t.
Speaking at Dairy Day last Saturday, GIRA analyst Christophe Lafougere said that dairy farmers need to hear the signals to stop producing before the tide will turn in dairy markets.
He said that the price drop was as a result of the extra supply in the world market, particularly from Europe, New Zealand and the US, with cheap butter in the US lowering the global price.
The bad news keeps coming for dairy markets, with further substantial price cuts for butter, cheese and whole milk powder (WMP) in Europe.
The news wasn’t much better at the Global Dairy Trade (GDT) auction, which saw the index fall by 3% on over 38,000t of product sold.
Fats took the biggest hit on the GDT, with butter dropping in price by 7.6% and butter oil (anhydrous milk fat) dropping by 5%.
WMP also took a wallop, dropping by 1.9% to reach €2,978/t. Cheddar fell by 2.8% while mozzarella fell by 2.7%.
On the protein side, the picture was a bit better, with skim milk powder (SMP) only falling by 0.6%.
In Europe, prices for SMP actually increased this week by €15/t, which isn’t much, but the only price increase in dairy that we’ve seen for a while.
Apparently, the drop in prices has made SMP a bit more affordable in many destinations, so there is increased demand for it.
In Europe, butter continued its slide downwards, falling by €115/t to reach €4,785/t this week. There was bad news for cheese too, as cheddar fell by €180/t to €3,285/t, while WMP fell by €50/t to €3,275/t.
Speaking at Dairy Day last Saturday, GIRA analyst Christophe Lafougere said that dairy farmers need to hear the signals to stop producing before the tide will turn in dairy markets.
He said that the price drop was as a result of the extra supply in the world market, particularly from Europe, New Zealand and the US, with cheap butter in the US lowering the global price.
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