World dairy prices fall again at GDT auction

World dairy commodity prices took another knock when Tuesday’s (19 January) Global Dairy Trade auction price index fell 1.4%.

This second auction of 2016 for the New Zealand-based online trading platform marks the second consecutive fall for the index after small rises in the final two sales of 2015. Since then, new figures have confirmed that world milk output continues well above recent averages and is likely to rise by another 1% in 2016.

See also: Muller drops milk price by 1p litre from mid-February

The overall average price at the GDT sale was US$2,405/t (£1,693/t), with the largest falls seen in butter, cheddar and rennet casein prices.

While 23,265t of product was offered, the quantity sold (21,930t), was down by almost 30% on the equivalent 2015 sale. 

GDT dairy commodity prices – 19 January 2016

• Anhydrous milk fat index up 2.4%, average price US$3,724/t (£2,622/t)
• Butter index down 5.9%, average price US$3,162/t (£2,226/t)
• BMP index up 2.7%, average price US$1,620/t (£1,141/t)
• Cheddar index down 3.4%, average price US$2,867/t (£2,019/t)
• Lactose index down 1.7%, average price US$579/t (£408/t)
• Rennet casein index down 7.8%, average price US$4,405/t (£3,102/t
• Skim milk powder index down 3.2%, average price US$1,835/t (£1,292/t)
• Whole milk powder index down 0.5%, average price US$2,188/t (£1,541/t)