The GDT has started 2018 on a positive note, with average dairy prices rising 2.2% at today’s auction in New Zealand. The positive outcome at this week’s GDT event will be a relief for farmers after the benchmark dairy index recorded five negative results from six auctions in the final three months of 2017.

This week’s positive result at the GDT was driven by a strong bounce in the average price of whole milk powder (WMP), which increased over 4% to $2,890/t (€2,395/t). The price of skimmed milk powder (SMP) also enjoyed a slight boost this week after plunging to yearly lows at the end of December. SMP prices increased almost 2% this week to reach $1,700/t (€1,410/t).

On the fats side, butter prices were flat at $4,500/t (€3,740/t). The price of butter milk powder plunged over 7% this week to $1,870/t (€1,550/t), while cheddar prices were down 2% to just under $3,320/t (€2,755/t).

A total of 25,400t of dairy product was offered for sale this week, which is a lower volume of product than was sold on the GDT in the months before Christmas.