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This week’s GDT auction index fell by 2% to US $2,851/t, making it the sixth price drop in a row. Butter fell by 1.7%, with cheddar and whole milk powder down by 4.6% and 2.9% respectively, although skim milk powder was up 1.2%.
Despite the downward GDT event, European markets appear to be hardening slightly.
On Wednesday, the weekly Dutch Dairy Board auction recorded no change in butter and skim milk powder prices, which remain on €4,300 and €1,590/t respectively.
Skim prices have increased in recent weeks, as have whole milk powder prices, which are now at €2,650/t.
While these improvements are welcome, industry sources still point to a general price correction, after 10 weeks of falling commodity prices.
Dutch dairy giant Friesland Campina has cut its November milk price by 1c/l to 38.4c/l for milk delivered at 3.47% protein and 4.41% butterfat. This converts to a sterling equivalent of 33p/l.
Britain’s largest processor Muller has cut price by 1p/l to 28.5p/l for liquid milk. Spot prices for raw milk in Britain are now trading at 24p/l.
The value of cream to liquid milk manufacturers has seen a significant drop in value during October. The average for the month was £1,840/t, down from £2,130/t in September. Current prices make cream worth 10.3p/l to processors, compared with 12p/l in September.
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