Analysis Milk
Global Dairy Trade falls slightly, mozzarella stands out
Global dairy markets remain under pressure, as was evident at the latest GDT auction. While major price shocks were absent this time, the dynamics between milk powders, milk fats, and cheeses show the market is far from stable. Read more about developments in milk powders, the pressure on milk fats, and the strong price fluctuations in cheeses like cheddar and mozzarella.
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Some commentators are suggesting that prices have reached a new low with this auction, but that seems a premature conclusion for now.
Although the price index fell by only 0,8%, several thousand tons less were sold than at the previous auction. Moreover, there is still considerable pressure on the international dairy markets, and sharp fluctuations in exchange rates are creating additional uncertainty.
It was also striking that only a limited range was offered at the GDT: six commodities, where the range usually consists of nine types.
Milk fat continued to lose ground, though only slightly. The average butter price fell by about 1%, and butter oil by almost 2%. The largest price fluctuations were seen in cheese: the average cheddar price rose by 2,2%, while mozzarella saw a significant decline, dropping by 8%.