It was both skim (SMP) and whole milk powder (WMP) to thank for a positive index at this week’s Global Dairy Trade (GDT) auction.

SMP prices were up 4.3% to a value of €3,433/tonne. WMP was also up slightly by 1.2% to a value of €3,217/tonne.

Butter and cheddar were back 0.3% and 3.7% in this week’s auction to €4,230 and €3,503 respectively. Overall, the index rose by 1.2%, a positive after September’s negative return.

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In terms of European prices, commodities were again fairly stable, with decent increases for powders and cheddar. Butter was back however.

Milk supply

According to the Ornua market report for October, milk supplies internationally are well up again on August supplies. This is despite the drought across Europe and parts of the US.

Overall, EU milk supply is up 1.1%, while global supplies are up 1.4%. This growth in production is continuing to put a dampener on the hopes for price increases before the end of the year.

Until supply drops, prices will remain stable, but subdued. As has been highlighted in this column over recent weeks, the drought impact will only really be realised in early 2027, as the smaller than normal winter feed reserves start to run low.

This should see cow numbers drop as farms opt to cull and, in turn, milk supply will fall somewhat.

In an Irish context, milk collections are back 4.3% for August. It seems Ireland was one of the countries that was most affected by drought. It’s worth noting these figures are based on 2025 August volumes which is a very high base.