Global Dairy Trade auction slips seventh time

Prices at Fonterra’s Global Dairy Trade auction fell again this week, hitting the lowest level since February last year.

The average winning price dropped 1.8% to US$3,873/t (£2,300) on 20 May, despite supplies being tighter with 33,677t sold.

Tuesday’s drop means the GDT index has fallen seven successive times since mid-February.

See also: Global dairy trade price slide slows again

Cuts to farmgate milk prices in the UK last month have been partly blamed on the weaker returns from global commodity markets.

All products except anhydrous milk fat and rennet casein suffered lower prices, while no lactose or milk protein concentrate was offered.

Individual product results were:

• Butter sold at a weighted average price of US$3,667/t (£2,177) and the index was down 3.8%
  
• Cheddar sold at a weighted average price of US$4,108/t (£2,439) and the index was down 2.1%
  
• Anhydrous milk fat sold at a weighted average price of US$4,255/t (£2,526) and the index was up 1.9%
  
• Butter milk powder sold at a weighted average price of US$3,950/t (£2,345) and the index was down 1.9%
  
• Skimmed milk powder sold at a weighted average price of US$3,733/t (£2,216) and the index was down 3.5%
  
• Whole milk powder sold at a weighted average price of US$3,877/t (£2,301) and the index was down 1.1%
  
• Rennet casein sold at a weighted average price of US$11,861/t (£7,041) 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 each 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 last month announced it was also offering British butter milk powder.