Global Dairy Trade auction down 45% on February high

Prices on the Global Dairy Trade auction took another heavy hit yesterday, as much higher supplies saw every commodity suffer losses.

The average winning price was US$2,787/t (£1,691), 6% lower than at the last fortnightly sale and the sixth drop running.

Prices are now down 45% from their February high, reflecting the pressure on wholesale dairy markets across the world.

The amount of product sold on the auction jumped to 57,010t from 46,387t at the previous sale, as production in the northern hemisphere remains strong and New Zealand moves towards its flush.

See also: Five charts that explain the milk price crash

Every commodity faced falls, with rennet casein, butter milk powder and skimmed milk powder seeing the bigger drops.

Individual product results were:

  • Anhydrous milk fat fell 5.8% to US$3,360/t (£2,069). It has now dropped 40% since February.
  • Butter fell 5.6% to US$2,753/t (£1,670). It has now dropped 42% since February.
  • Butter milk powder fell 12.9% to US$3,174/t (£1,926). It has now dropped 34% since February.
  • Cheddar fell 4.9% to US$3,275/t (£1,987). It has now dropped 34% since February.
  • Rennet casein fell 14.3% to US$8,232/t (£4,995). It has now dropped 31% since February.
  • Skimmed milk powder fell 9.5% to US$2,600/t (£1,578). It has now dropped 45% since February.
  • Whole milk powder fell 4.3% to US$2,673/t (£1,622). It has now dropped 47% since February.