Global Dairy Trade price decline slows

Prices at Fonterra’s Global Dairy Trade auction fell for the fifth time running on Tuesday (15 April), dipping 2.6% on the fortnight.

The average winning price dropped to US$4,047/t (£2,419), even though supply was tighter than the previous auction, with 36,549t sold.

But the fall was not as dramatic as in recent weeks, after prices plummeted 8.9% two weeks ago.

See also: Global Dairy Trade auction price slide continues

This week all products apart from anhydrous milk fat fell in price, with butter milk powder and milk protein concentrate seeing the biggest drops.

Individual product results were:

• Butter sold at a weighted average price of US$3,832/t (£2,290) and the index was down 4.9%
  
• Cheddar sold at a weighted average price of US$4,273/t (£2,553) and the index was down 3.3 %
  
• Anhydrous milk fat sold at a weighted average price of US$4,086/t (£2,442) and the index was up 0.6%
  
• Butter milk powder sold at a weighted average price of US$4,075/t (£2,435) and the index was down 8.6%
  
• Skim milk powder sold at a weighted average price of US$3,969/t (£2,371) and the index was down 4.4%
  
• Whole milk powder sold at a weighted average price of US$3,990/t (£2,384) and the index was down 1.6%
  
• Milk protein concentrate sold at a weighted average price of US$7,824/t (£4,676) and the index was down 7%
  
• Rennet casein sold at a weighted average price of US$10,630/t (£6,351) and the index was down 4.3%
  
• No lactose 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 this week announced it was also offering British butter milk powder.