The Global Dairy Trade (GDT) price index has fallen by 0.3% at the latest event today (Tuesday, October 15), and now stands at 1,160, down from 1,164 at the previous event.
Today’s event saw a total of 38,956 metric tonnes (mt) sold, with an average price of €3,529/mt. The decline in the GDT price index follows two consecutive increases.
The products offered at today’s trading event were anhydrous milk fat, butter, cheddar, lactose, mozzarella, skim milk powder and whole milk powder.
A total of 169 bidders participated in the 366th GDT event of which 127 were winning bidders across 17 bidding rounds and a total duration of two hours and 24 minutes.
GDT price index
Looking at the indices for each product offered, cheddar recorded the biggest increase at 4.2% to an average price of €4,308/mt at the latest GDT trading event.
The index for anhydrous milk fat saw a slight increase of 0.3% to €6,623/mt. No change was recorded in the index for whole milk powder which remained at €3,255/mt.
The indices for butter, skim milk powder, mozzarella and lactose all declined, with the index for mozzarella recording the most significant drop at 8.2% to €4,177/mt.
The index for lactose was down by 5.8% to an average price of €820/mt. The indices for skim milk powder and butter fell by 1.8% and 0.3% to €2,515/mt and €5,951/mt respectively.
Dairy markets
Meanwhile, the Ornua monthly Purchase Price Index (PPI) for the month of September stands at 151.4, having increased from the previous month at 144.7.
The latest PPI implies an indicative return of 44.9c/L, inclusive of 4.8% VAT, for milk at 3.6% fat and 3.3% protein which is net of Ornua’s costs to market.
This represents an increase of 2.4c/L from the previous month of 42.5c/L. Ornua said this result reflects increased market returns throughout the month of September.
Last week, Lakeland Dairies announced that it will increase its base milk price for September by 2.5c/L, as well as offer a €30/t feed rebate to its suppliers.
A base price of 49c/L at constituents of 3.6% butterfat and 3.3% protein will be paid in the Republic of Ireland, which is inclusive of the 0.5c/l Sustainability Incentive Payment.
