GlobalDairyTrade index crashes 10.6%

Faint hopes of global dairy markets rebounding this year were dashed when the globalDairyTrade auction index crashed 10.6% yesterday — down 13.1% for whole milk powder, 13.9% for cheddar, 9.5% for butter, and 10.1% for skim milk powder.

The ninth consecutive falling auction price came as no surprise to industry analysts looking at futures markets, and at the weakest markets since 2009.

The result reinforces analysts’ expectations of no sustained improvement in prices until 2016, because of global milk supply continuing to expand, despite dairy commodity prices falling more than 40% for milk powder, and about 30% for cheese, butter and whey, compared to a year ago.