This week’s Global Dairy Trade (GDT) auction showing a 0.4% increase in the index price since the last auction will have calmed the nerves of many.

However, powders continue to perform poorly, with prices for skim milk powder (SMP) down 1.1% and prices for whole milk powder (WMP) down 1.6%.

The biggest gains were for cheese, which increased by 6.2%, followed by anhydrous milk fat which increased by 4% and then butter, which went up by 0.8%.

The auction is reflective of the market, with powders in plentiful supply and in low demand, driven by little interest from China.

European prices

The spot prices for dairy in Europe are holding OK. Butter is up €20/t to €6,640/t, while cheddar cheese remains steady at €4,340/t. At this price, it’s commanding a higher price than GDT cheddar, which was sold at €3,866/t on Tuesday.

European powders are holding their own, with WMP going up €15/t to €3,815/t, over €930/t higher than the GDT price. SMP fell by €40/t this week to reach €2,320/t, over €30/t cheaper than the GDT price.

Meanwhile, Dutch dairy supplies continue to fall with supply for June back 2.2% compared with last year.

For May, supplies were back 1.6% compared with May 2023, so the gap is widening. According to DCA Market Intelligence, higher-than-normal cow slaughterings and high costs of disposing of slurry due to the nitrates rules are the main reasons for the fall-off in Dutch dairy this year.