There has been a 5.9% overall increase in the average price at the latest Global Dairy Trade (GDT) auction.

The average price currently stands at €2,885, and marks the third consecutive increase in prices since the beginning of January.

Butter saw a 7.9% increase to €4,284, whole milk powder (WMP) increased by 7.6% to €2,619 and skimmed milk powder (SMP) rose by 7.2% to €1,568.

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Cheddar also increased by 7.9% to €4,284 and butter milk powder by 8.4% to €1,655.

As reported last week, the drought in New Zealand is continuing to have a lingering after-effect, and helping to ensure positive prices in the latest GDT results.

The New Zealand milk supply may be down, but the US ramped up its milk production by 1.1% last December, while EU milk volumes were up 6.13% last November.

The European Commissioner for Agriculture and Rural Development Phil Hogan has warned EU countries not to create a milk surplus or risk destabilising the market.

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