Dairy commodities were boosted with another positive GDT auction this week, where overall prices rose by 3.6% to US $3,166/t.

When converted back to sterling, the latest auction prices would equate to a farmgate price of 26p to 27p/litre allowing for some form of processing costs. This puts it in line with the UFU’s most recent milk indicator price of 26.42p/l.

At the GDT auction, whole milk powder (WMP) increased by 5.2% to US$3,233/t, but skimmed milk powder (SMP) fell by 0.9% to US$1,982/t.

The drop in SMP can partially be offset after another strong auction for butter, which recorded a 1.1% increase in price to $4,911/t. Cheddar prices also recorded a significant rise of 4.6% to $3,666/t.

Dutch prices

This week’s Dutch auction was also positive, with WMP prices rising by €50/t to €2,730. While SMP had a bad week on the GDT front, the Dutch price increased by 1.16% or €20/t to €1,750/t.

Butter prices continue to rise on the back of strong market demand. Prices rose by €20/t this week to €4,540.

Britain

In Britain, milk markets are mixed, with some downward moves in price, while others have improved their monthly base price.

Müller announced that it is increasing its milk price by 0.32p/l to 27.9p/l, which will be payable on deliveries from May to July.

Tesco announced it will increase its liquid milk price to its supply groups by 0.62p/l, bringing the farmgate price to 29.37p/l.

Dairy Crest has held its price for May at 28.92p/l for liquid milk and 30p/l for manufacturing milk.

Elsewhere, Arla has reduced its milk price for May by 0.76p/litre, bringing its liquid price to 27.37p/litre and its manufacturing price to 26.27p/litre.