The benchmark GDT dairy index recorded its third consecutive decline this week, as milk powder prices continue to correct following an unusual spike in prices early July.

At this week’s GDT auction in New Zealand, average dairy prices weakened almost 2% to just over $3,000/t (€2,515/t), with falls in the price of whole milk powder (WMP), butter and cheddar leading the index lower.

The price of WMP, which accounts for more than half of all product traded on the GDT platform, fell more than 2% this week to just under $2,940/t (€2,460/t). At the same time, the price of cheddar fell by 4% to $3,440/t (€2,880/t), while New Zealand butter prices were back 2% to $3,370/t (€2,820/t).

The only positive from this week’s GDT auction was a 1% increase in the average selling price of skimmed milk powder (SMP) to just over $2,600/t (€2,185/t).

Closer to home, European dairy prices remain very stable, with little trade taking place right now with most dairy buyers on summer holidays. Spot prices for butter haven’t changed in almost two months now and remain steady at €3,330/t, while spot market prices for SMP continue to trade around the €2,050/t mark.

European dairy prices are supported by a subdued level of milk production across the continent this year. While Irish and Polish milk production continues to expand, milk supply growth in large producing countries such as Germany, France, the UK and the Netherlands has eased over the summer months and supported prices.