Just as European dairy markets seem to be settling down a bit, the Global Dairy Trade (GDT) goes ahead and disappoints.
This week’s auction, the last one for 2025 saw a price cut in the index of 4.4%, which follows on from the last auction when the price fell by 4.3%.
It’s a whopper of a price cut and it just shows the negativity in the market that for so long seemed to evade the New Zealand-based auction – a key selling ground for Fonterra.
It’s not that the European market is faring any better this week, but the rate of price cuts does seem to have slowed down.
Hopefully, the next step is for a levelling off and then to be followed by a price rise.
This will definitely happen, but we just don’t know when.
Back to the GDT auction, the main movers were whole milk powder (WMP), which fell in price by a staggering 5.7% and is now well and truly back in the 2023 selling price range.
Skim milk powder (SMP) fell in price by 2.1%, while butter fell in price by 2.5%, with its sister product anhydrous milk fat falling by over twice that, recording a 5.2% cut to price.
In Europe, butter prices are at the lowest level since 2021, with all of the gains in dairy market prices due to Ukraine war and COVID-19 now almost all gone.
While butter did drop in price by €130/t, there were notable gains for cheddar cheese in Europe this week, with cheddar up €80/t and WMP up €30/t, while SMP did record a €30/t drop this week.
With the markets about to close for Christmas, there won’t be much price movement for the next few weeks.
Just as European dairy markets seem to be settling down a bit, the Global Dairy Trade (GDT) goes ahead and disappoints.
This week’s auction, the last one for 2025 saw a price cut in the index of 4.4%, which follows on from the last auction when the price fell by 4.3%.
It’s a whopper of a price cut and it just shows the negativity in the market that for so long seemed to evade the New Zealand-based auction – a key selling ground for Fonterra.
It’s not that the European market is faring any better this week, but the rate of price cuts does seem to have slowed down.
Hopefully, the next step is for a levelling off and then to be followed by a price rise.
This will definitely happen, but we just don’t know when.
Back to the GDT auction, the main movers were whole milk powder (WMP), which fell in price by a staggering 5.7% and is now well and truly back in the 2023 selling price range.
Skim milk powder (SMP) fell in price by 2.1%, while butter fell in price by 2.5%, with its sister product anhydrous milk fat falling by over twice that, recording a 5.2% cut to price.
In Europe, butter prices are at the lowest level since 2021, with all of the gains in dairy market prices due to Ukraine war and COVID-19 now almost all gone.
While butter did drop in price by €130/t, there were notable gains for cheddar cheese in Europe this week, with cheddar up €80/t and WMP up €30/t, while SMP did record a €30/t drop this week.
With the markets about to close for Christmas, there won’t be much price movement for the next few weeks.
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