Chinese demand and rising global costs for feed behind astonishing jump in GDT price

Butter price up 13.7% in important GDT indicator of global dairy market trends
Chinese demand and rising global costs for feed behind astonishing jump in GDT price

Cows which are currently out on grass for a few hours every day are pictured coming in for milking in the Salesian Agricultural College, Pallaskenry, Co Limerick. Picture: O'Gorman Photography.

An unprecedented 15% rise in the Global Dairy Trade Price Index at today’s auction has indicated global dairy markets can deliver much improved milk prices for dairy farmers.

The eighth-in-a-row positive Global Dairy Trade auction result on Tuesday took prices to their highest level of more than seven years.

The index is now at 1,346, a level not seen since March 4, 2014.

This important indicator of global dairy market trends offers reassurance on the milk price front to dairy farmers.

With the milk production peak having passed in New Zealand, the No 1 global dairy exporter, global prices are less likely to weaken.

It was the No 1 product in the New Zealand industry, whole milk powder (WMP), that drove the index up 15% today, with a 21% WMP price rise to US$4,364 per tonne.

But the other product setting the dairy market alight is butter, up 13.7% in price. Butter is an important product for Ireland and for the EU.

The price of anhydrous milk fat jumped 7.4%, while lactose was 4.9% dearer in today’s auction.

The price rose 3.5% for skim milk powder, another product important for the EU dairy industry.

The cheddar cheese price index gained 1.3%.

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