Dairy prices have rebounded at the latest Global Dairy Trade (GDT) auction, with prices up by 5.5% this Tuesday.

The GDT index is recovering after dropping by 6.9% on 2 July this year and only marginally increasing at the two subsequent auctions.

The majority of average prices have increased with only one item down, with some 34,916t of dairy product changing hands at the auction.

Average prices

The average price paid for whole milk powder rose by 7.2% to €3,141/t, while butter prices were up to €6,050/t, up by 3.7%.

Mozzarella also saw a substantial rise to €4,340/t, up by 5%, while anhydrous milk fat went up 4.8% to €6,583/t.

Skim milk powder prices increased by 4% to €2,378/t, while lactose climbed 2.7% to a price of €853/t.

Cheddar was the only item at this auction that fell in price, dropping to €3,856/t, down marginally by 0.2%.

Figures were not available for butter milk powder at this auction.

Milk prices

This latest price rise comes after Irish dairy processors lifted milk prices last week.

A spokesperson for Dairygold said that dairy market returns have improved, primarily driven by further increases in butter prices.

"The Dairygold board remain[s] focused on encouraging milk suppliers to maximise their milk production for the remainder of the year," they said.

These comments were echoed by Tirlán chair John Murphy, who said that butter and cream prices recorded a notable increase in recent weeks due to tight supply.

"Milk constituent levels have struggled in Europe due to weather and feed issues, which has reduced butterfat availability.

“Global milk supply is forecast to increase in the coming months, but overall supply is likely to be similar to the previous year or only marginally higher.

"The main driver of market dynamics in the coming months is likely to be the seasonal ramp-up of production in the southern hemisphere," he said.