News dairy business
Higher Global Dairy Trade fuels confidence
Dairy prices on the Global Dairy Trade have again shown a considerable increase. It is the fourth increase in a row, raising the average market level to the highest level since mid-June.
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
Just like the previous auction sessions, the milk powders are a driving force in the market. With an increase of more than 4%, skimmed milk powder rises to just $2.700 per tonne. Whole milk powder increases in the same order of magnitude, passing the psychological barrier of $3.000 per tonne. The average GDT quotation increases by 4,2% to $3.200 per tonne. The higher milk powder prices indicate renewed purchasing interest from China. It is also striking that European milk powder - offered by the Belgian Solarec - sold the most expensively. This was also the case at the previous auction earlier in October.
Butter and cheddar
Butter also made significant progress with an increase of 2,9% and rose to just under $5.000 per tonne. The price of cheddar is slowing down, but this dairy product was still the source of dissonance at the previous auction when the price dropped considerably. All in all, the dairy market once again receives confirmation that the upward trend has begun. Presumably the higher prices also have a reaction on the European market and probably also on the other continents. Confidence in market recovery was already there and will be further fueled by the higher GDT.