Global Dairy Trade average price falls for first time since early August

By Mark ASTLEY contact

- Last updated on GMT

Global Dairy Trade average price falls for first time since early August

Related tags: Milk

The Global Dairy Trade (GDT) Price Index declined by 3.1% today - the first fall in the average price on the platform since the beginning of August.

The Price Index, a weighted average of percentage changes in dairy commodity prices on the Fonterra-owned platform, fell 3.1% at today’s bi-monthly auction.

An average selling price of US$2,735 per tonne of product was reported - down from US$2,834 at the last auction on October 6.

Volumes also declined from 36,050 tonnes on October 6 to 34,519 tonnes.

Prices of butter, whole milk powder (WMP), skim milk powder (SMP) prices, which fell 11.1%, 4.6% and 4.5% respectively, were the main drivers of the 3.1% Price Index decrease.

Cheddar and lactose prices also fell, by 2.2% and 3.8%.

Meanwhile, butter milk powder (BMP), anhydrous milk fat (AMF) and rennet casein prices increased, by 2.4%, 3.2% and 2.1%.

price index oct 20

The Price Index rose a total of 52.1% over the last four GDT auctions - 9.9% on October 6, 16.5% on September 15, 10.9% on September 1, and 14.8% on August 18. 

Prior to that, on August 4, the Price Index fell 9.3% - a tenth consecutive fall in the average price.

Within days of the August 4 auction, US dairy giant Land O'Lakes formally withdrew as a seller on the platform. It joined GDT as a seller in March 2014 offering SMP, but had not offered product for more than six months.

Amul (India), Arla Foods (Denmark), Arla Foods Ingredients (Denmark), DairyAmerica (USA), Euroserum (France), Fonterra (New Zealand) and Murray Goulburn (Australia) continue to offer products on the platform.

Yesterday, GDT also announced Arla Foods will begin offering Instant Medium Heat SMP from November 3. 

Arla already offers BMP and Regular Low Heat SMP and Regular Medium Heat SMP on the platform. 

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