Results from the latest Global Dairy Trade (GDT) Auction indicate that the average product price fell by 1.3% to $2,409/t.

This is the seventh consecutive drop in the New Zealand auction, and leaves dairy prices at their weakest since August 2009.

Despite the continued fall in average price, the overall result was mixed, with positive results for butter, buttermilk powder, cheddar and casein.

ADVERTISEMENT

The latest slide was led by anhydrous milk fat, which was back 8.9% to $2,814. Whole milk powder (WMP) was down by a marginal 0.1% to $2,327/t while skim milk powder was back 0.2% to $1,978/t.

Further losses were limited by higher prices for butter, up 3.3% to $2,707/t and butter milk powder, up 10% to $1,975/t. Prices for cheddar improved by 2.4% to stand at $3,128/t, while casein prices were up 4.3% to $6,126/t.

Commenting on the results, IFA National Dairy Committee chair Sean O’Leary said that we are now seeing strong positive price progression for butter, casein and cheddar cheese, and a stabilisation of powder prices, for the first time since March.

ICMSA’s Pat McCormack added that the estimated average milk prices in the EU stood at €31.03 per 100kg for May, and he urged processors and co-ops to hold milk prices.

The latest global quotations released on Monday show US cheese and butter still well ahead of product quoted in Oceania and Europe.