There are mixed fortunes for dairy prices this week.

The Global Dairy Trade (GDT) price index increased by 1.2% to $3,851 (€3,469) per tonne, the highest level since April 2022.

Volumes traded were marginally higher, with production in New Zealand almost back to full capacity following seasonal lows in August.

The GDT has been on an upward trend since August last year, with the exception of a wobble in July this year, and this was continued at this week’s auction. However, not all products performed the same, with falls in butter, skim milk powder (SMP) and mozzarella being offset by an increase in whole milk powder (WMP) and cheddar.

The trend was similar with prices in Europe this week, though dairy markets remain well ahead of their southern hemisphere counterparts.

There was a sharp fall in butter prices, down €90t, and SMP prices fell €75t compared with last week, while WMP prices were up €15t and cheddar was €25t higher.

After a prolonged run of increasing dairy prices, analysts are suggesting that the upward potential for prices may be exhausted.

At the same time, it is being pointed out that the market looks fairly solid due to tight supplies across Europe.

FrieslandCampina will pay €53.50 per 100kg (51.9c/l) for milk, up 75c on September, and €60.50/100kg (58.7c/l) for organic milk. Arla’s base price for milk in Netherlands is €49.58/100kg, the equivalent of 48.1c/l but additional supplements can add up to €3.60/100kg or 3.5c/l to it.