European dairy markets have lifted over the last week on the back of strong buyer demand. Markets have also reacted positively following last week’s GDT auction in New Zealand, where dairy commodity prices increased 4.9%, which was the fastest pace of price growth on the GDT in over a year.

Prices reported by the Dutch Dairy Board this week show an increase across the board for key dairy products. In terms of butter, European markets are stable, with prices rising 3% over the last week to €4,160/t. Futures markets for butter show prices around the €4,250/t mark into April, May and June.

Cheddar prices across Europe have also held steady since the start of the new year around the €3,100/t mark. On the powder side, prices were also looking up.

European prices for whole milk powder (WMP) increased 3% in the last week to €2,500/t in response to last week’s GDT auction where WMP prices increased 5%.

Even the market for skimmed milk powder (SMP) showed some upward momentum in Europe this week, with prices rising slightly to €1,360/t.

At this level, SMP prices remain on the floor, but any upward movement is welcome given the negative trend of recent months.

Markets were reacting positively to the news that the European Commission had sold more than 1,800t of SMP out of intervention in the last week for prices in the region of €1,190/t. Any sign of movement on the intervention stockpile is positive.