Whole milk powder (WMP), the key product in the Global Dairy Trade (GDT) auction, dipped under the $4,000 per tonne mark this week and brought the average result down 1.3%.
While the result is negative, it isn’t a big drop and effectively means prices have more or less held steady for the last seven auctions since it jumped on average 15% in March 2021.
Butter prices dropped by 1.7% to $4,612/t.
Prices for skim milk powder (SMP) were down by 1.7% to an average of $3356/t.
While international prices are steady, Irish milk prices at farmgate level are trending upwards to reflect the market for the last three months.
Lakeland, Glanbia, Carbery and Kerry have all announced increases to May milk price as dairy commodity markets continue to harden.
In total, for ROI milk suppliers it will mean a €10m injection into May milk cheques.
Up to now, milk processors have been paying behind what the market is returning.
While there is buyer uncertainty regarding food service demand, European commodity prices firmed in recent weeks due to reduced product supply and strong retail sales.
This in itself is a fair reflection that the market is strong and demand is high.
The European powerhouse of milk supply from January to April was flat at a time when you would expect higher volumes.