The first Global Dairy Trade auction of 2017 has seen prices at the event fall 3.9%. The drop follows a a decrease of 0.5% at the last auction of 2016.
Whole milk powder (WMP) prices were down 7.7% at today’s auction, with lactose prices and rennet casein prices down 2.9% and 2.7%, respectively.
Skimmed milk powder (SMP) prices increased 2.3% and butter prices were up 0.5%.
Key Results
- AMF index down 0.6%, average price US$5,352/MT
- Butter index up 0.5%, average price US$4,308/MT
- BMP index up 4.5%, average price US$2,670/MT
- Ched index up 1.4%, average price US$3,894/MT
- LAC index down 2.9%, average price US$836/MT
- RenCas index down 2.7%, average price US$6,234/MT
- SMP index up 2.3%, average price US$2,660/MT
- WMP index down 7.7%, average price US$3,294/MT
Meanwhile, Irish milk prices should break through the 30c/L barrier this month, according to IFA Dairy Committee Chairman Sean O’Leary.
“We have continued to see a significant fall back in milk output across the EU, so there is every prospect of the co-ops adding another 1c/L on to the price they pay for December milk.
“And that should get us through the 30c barrier,” he said.
O’Leary believes that the prospect for dairy prices remains positive right up to the end of June this year.
“I don’t think European farmers will be able to turn the milk production tap back on that quickly, such was the scale of culling that took place at the back end of last year. Many farmers will also prioritise on paying back debt, before they consider increasing output.
“All of this bodes well for Irish milk prices over the coming months.”
