Global Dairy Trade auction recovers for first time since February

Fonterra’s Global Dairy Trade (GDT) auction has seen a price rise for the first time since the start of February.

The average winning price was up 0.9% at US$3,807/t (£2,245) on 17 June, recovering slightly after eight successive drops.

Supplies were tighter again after jumping a fortnight ago, at 31,984t of products sold.

UK dairy farmers will hope better results at the fortnightly auction will help to stabilise farmgate prices, after most milk processors issued cuts this spring.

See also EU farm ministers fail to agree milk market measures

Buttermilk powder and rennet casein led the way with a 17% increase, with butter, cheddar, whole milk powder and rennet casein also recording rises.

Skimmed milk powder and anhydrous milk fat saw their average prices fall.

Individual product results were:

• Butter sold at a weighted average price of $3,699/t (£2,181) and the index was up 1.8%
  
• Cheddar sold at a weighted average price of $4,381/t (£2,582) and the index was up 2.4%
  
• Anhydrous milk fat sold at a weighted average price of $3,898/t (£2,298) and the index was down 3.8%
  
• Butter milk powder sold at a weighted average price of $4,535/t (£2,672) and the index was up 17%
  
• Skimmed milk powder sold at a weighted average price of $3,855/t (£2,271) and the index was down 0.2%
  
• Whole milk powder sold at a weighted average price of $3,658/t (£2,156) and the index was up 2.4%
  
• Rennet casein sold at a weighted average price of $11,155/t (£6,578) and the index was up 4.6%
  
• No lactose or milk protein concentrate was offered

GDT – owned by New Zealand co-op Fonterra – holds two online auctions a month, with dairies from Europe, India, USA, New Zealand and Australia selling commodities to buyers from more than 90 countries.

Arla started selling British skimmed milk powder from Westbury at the auction in December and earlier this year announced it was also offering British buttermilk powder.