In the main, dairy commodity prices were on an upward trajectory this week in Europe thanks to healthy demand at a time of the year when European milk production is at its lowest point.

On European spot markets for dairy this week, prices for cheese and milk powders were on the rise, while butter prices remain steady.

On cheese markets, spot prices for cheddar showed the first upward movement in weeks to hit €3,250/t. Gouda prices also rose slightly, while mozzarella prices were steady €2,700/t.

On the milk powder side of the market, spot prices for skimmed milk powder (SMP) increased to €2,200/t, which is its strongest price level since June. The price of whole milk powder (WMP) also increased this week to hit €2,680/t. Butter prices remain in a healthy place and are steady at €3,350/t.

New Zealand butter prices increased over 3% to $3,680/t

Meanwhile, in New Zealand, the benchmark GDT index posted its third consecutive increase, with average dairy prices up 0.4% at this week’s auction in Auckland.

The slight lift in the GDT index was down to improved prices for butter, cheese and milk powder.

New Zealand butter prices increased over 3% to $3,680/t (€3,105/t), while cheddar prices also increased 3% to break the $3,800/t mark (€3,205/t).

The price of WMP, the key commodity traded at the GDT auction, was steady at just over $3,000/t (€2,530/t). The price of New Zealand-sourced SMP was marginally down at $2,850/t (€2,405/t). The only major fall in price was an 8% decline in the value of lactose traded at this week’s GDT.