Average dairy prices dropped more than 5% at this week’s GDT auction in New Zealand. The benchmark dairy index was driven down by sharp falls in milk powder prices.

The price of whole milk powder (WMP) corrected sharply at this week’s GDT auction, plunging 7% in value to just under $3,100/t (€2,780/t). It was a similar story for skimmed milk powder (SMP) with average prices falling 6% to just under $2,870/t (€2,570/t).

On the fats side, butter prices fell more than 2% this week to $3,890/t (€3,490/t), while anhydrous milk fat was generally steady at $4,865/t (€4,360/t). The price of cheddar cheese rose almost 2% to hit $3,870/t (€3,470/t).

Almost 36,000t of product was sold at this week’s GDT event as New Zealand enters into the second half of its milking season.