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The Global Dairy Trade (GDT) index price has seen a significant increase at the latest auction, with an 8.3% lift.
The average price now stands at $3,197/t (€2,830/t) after the 7 July event. In total, 25,688t of product was sold.
The biggest increases were for whole milk powder (WMP), which increased by 14% to $3,208/t (€2,839/t). There were also increases for skim milk powder (SMP) prices, up 3.5% to $2,694 (€2,384/t).
On the fats side, butter increased by 3% to $3,717/t (€3,290/t), while cheddar rose by 3.3% to $3,762/t (€3,330/t).
Dairy commodity prices had fallen in the wake of the COVID-19 pandemic, but have been on an upward trajectory of late.
Positive
Commenting on the increase, IFA dairy chair Tom Phelan said it was the clearest indication yet that markets were recovering post-lockdown.
He added that co-ops should now have the confidence to increase June milk prices by at least 1c/l.
“After several weeks of steady European spot and average market price increases for the main commodities, I believe this is the most decisive indicator yet to show that confidence and demand are returning to dairy markets,” he said.
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