The rise in the Global Dairy Trade (GDT) result this week will put a pep back in the step of those looking to secure dairy product for the autumn.

With milk supply volumes in New Zealand (NZ) seasonally peaking over the next month, the expectation was that the downward price trend experienced since March might have continued. However, despite the seasonal flush of milk in NZ, the 4.9% rise this week will underpin markets now for the next number of weeks. Supply in NZ and in other parts remains tight and with China back in the picture, demand is holding and increasing.

For months, the GDT was in a downward spiral, but all the big commodities jumped this week. Since the end of February, the GDT has shown an almost continuous decline. Only in June did the index record a small increase.

Whole milk powder

Again, whole milk powder (WMP) is the best indicator of where things are at.

This week, WMP had the largest price increase of 5.1% to $3,610/t. Skimmed milk powder (SMP) also recorded a rise to $3,575/t.

Last week, we published the August Ornua price including VAT at 59.5, but we had it termed excluding VAT.

Just to clarify, the all-in price, net of processing cost adjusted for increased energy cost and including the Ornua value payment, is 56.2c/litre ex-VAT and 59.5c/litre including VAT.

Last week, we published the Irish Farmers Journal July milk league averaging 54c/litre ex-VAT at base solids.