As Irish milk processors announce December milk prices, the most recent January Global Dairy Trade (GDT) auction has shot up again.
The GDT milk auction result this week was up 4.6% and reinforces dairy markets are really strong at the moment.
It means the average price is up to $4,463/t US. However, more importantly, whole milk powder (WMP) is up 5.6% to $4,082/t. Skim milk powder (SMP) was also up 5% to $3,963 and butter was up 5% to $6,158.
No doubt this result was fuelled by Fonterra announcing that it was forecasting a reduced supply, the possibility of more dry weather striking in Oceania and input costs moving upwards quelling farmer enthusiasm to go chasing litres.
Remember, the Kiwis are on the downward curve in terms of their supply pattern, as European supply will start waking up from its winter slumber in the coming weeks.
Listen to Kiwi farmer Olin Greenan describe the mood in New Zealand on the most recent edition of Farm Tech Talk – price excellent, Fonterra going well, but costs high and increasing further.
In the last few days, Irish milk processors have announced December milk prices. Some farmers have got up to 60c/litre for December milk when all is included, but, for most spring-calving suppliers, the volumes are very small.
Most of the processors increased price by 1c/l. Carbery (west Cork co-ops), which hasn’t been dominating the monthly milk price as it would have previously, has announced a 0.5c/l top-up on all volumes supplied through 2021. That will be a decent boost as the year ends.