Global dairy markets were more subdued this week as the Global Dairy Trade (GDT) index recorded a 0.6% reduction. The main movers were skim milk powder (SMP), down 2.5%, and cheddar cheese, down 3.4%. Butter was the only product category that recorded a substantial lift, increasing in price by 2.2%. The main product at the sale, whole milk powder (WMP), saw a -0.2% fall on the last auction. In Europe, the steady fall in prices for most products continues, with butter dropping below the €7,000/t mark for the first time since August 2024. Butter prices are now €6,970/t, more or less what they were at when dairy prices peaked in 2022, so still historically high but not as high as it was before Christmas.
Global dairy markets were more subdued this week as the Global Dairy Trade (GDT) index recorded a 0.6% reduction. The main movers were skim milk powder (SMP), down 2.5%, and cheddar cheese, down 3.4%. Butter was the only product category that recorded a substantial lift, increasing in price by 2.2%. The main product at the sale, whole milk powder (WMP), saw a -0.2% fall on the last auction.
In Europe, the steady fall in prices for most products continues, with butter dropping below the €7,000/t mark for the first time since August 2024. Butter prices are now €6,970/t, more or less what they were at when dairy prices peaked in 2022, so still historically high but not as high as it was before Christmas.
Other products in Europe are more or less steady with no change to WMP, and a slight gain for cheddar and a drop in SMP price. What is remarkable is that both butter and skim prices at the GDT are higher than the prices quoted in Europe, which doesn’t happen very often. These are important product categories for Ireland, so if they are doing well in the global context it is good news for Irish sellers.
The volume of product traded at the GDT was down again on the last auction, with just over 22,600t sold at Tuesday’s sale. Both Arla and Friesland Campina, major European dairy processors, have announced annual results for 2024, with both co-ops recording big increases in profitability on the back of poor performance in 2023. Kerry Dairy Ireland also performed well in 2024 based on Kerry Group reports.
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