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Global Dairy Trade: demand for dairy is very subdued
The dairy market is under pressure due to weak demand, which is reflected in falling prices and a low trading volume at the GDT auction. Milk fat, in particular, is declining, while trade and exports are faltering. The milk powder market is more positive. Read more about the dairy market.
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At 14.993 tonnes, the traded volume falls back to the lowest level since 2013. Seasonally, volumes are often low during this period, but this year the level is exceptionally limited.
Weak demand is also putting pressure on prices. The average price falls by 2,7% to $4.143 per ton. This marks a third consecutive decline.
milk fat
Milk fat, in particular, is taking a sharp turn for the worse. Butter drops by 7,9% to $5.702 per ton. AMF falls by 9,6% to $6.357 per ton. The price pressure is explainable. Butter prices are also under pressure on the physical market in Europe due to ample stocks. In addition, there are signs that exports to the Middle East are stagnating, after there was extra demand at the start of the war in Iran.
Penalty
The cheeses show a mixed picture. Cheddar rises by 1,1% to $4.798 per ton. In contrast, there is a decrease of 3,1% to $3.850 per ton for another cheddar quotation from the Belgian supplier Solarec.
Milk powders
The picture is also mixed for milk powders. Whole milk powder falls by 0,6% to $3.666 per ton. Skimmed milk powder, on the other hand, rises by 3,2% to $3.448 per ton. This is the highest level since the autumn of 2022.