News

GDT increases 10 percent

Another solid gain in global dairy prices. The bi-monthly Global Dairy Trade auction on Tuesday saw the overall index jump 10.1 percent.  While no lactose or sweet whey powder was offered, prices were higher for the other seven products offered.

Cheddar cheese increased 16.8 percent over the February 3^rd auction, whole milk powder was 13.7 percent higher, anhydrous milkfat increased 6.4 percent, skim milk powder gained 5.7 percent, butter milk powder was 1.9 percent higher, rennet casein increased 1.2 percent and butter was 1.1 percent higher.

This is the fifth-consecutive increase in the overall index and the largest increase since April of 2013. Whole Milk Powder has increased 68 percent since the December 2^nd sale, butter is up 65 percent since November 4^th and rennet casein is up 75 percent since November 18^th.

The overall index now stands at 954, the highest it has been since last July 15^th.  The current rebound was spurred by the on-going drought in New Zealand which prompted Fonterra to reduce the amount of product they are offering on the auction.  There were 22,957 metric tonnes sold on Tuesday, down from 28,000 at the February 3^rd sale and the smallest volume since May of 2013.

Conducted on the first and third Tuesdays of each month, the Global Dairy Trade auction is used by dairy processors from the U.S., Europe, India, Australia and New Zealand to sell excess dairy product. The market is used as a price discovery mechanism for global dairy prices.