The GDT index fell by 4.9 per cent; EU milk purchase prices continue to fall

The downturn in the global dairy market continues to deepen – at the latest “Global Dairy Trade” auction, the dairy trade index fell by 4.9 per cent. This marks the third consecutive fall in the index and the largest drop this year.

The Cheddar price index saw the sharpest decline during this auction, falling by 12.3 per cent.

The price of skimmed milk powder fell by 7 per cent, butter by 5 per cent, whole milk powder – by 4.4 per cent, anhydrous milk fat – by 3.9 per cent, and lactose – by 3.6 per cent. 

Meanwhile, the price index for mozzarella cheese rose by 3.8 per cent, whilst whey powder prices increased by 8.2 per cent. 

According to data from the European Commission’s (EC) Milk Market Observatory, the average milk purchase price for the period January–May this year stood at 43.5 cents per kilogram. This figure is 18.5 per cent lower than in the same period last year and 5.4 per cent below the five-year average for the same period.

In May, the average purchase price of raw milk in the European Union (EU) fell for the eighth consecutive month.

The largest year-on-year falls in milk prices during this period were recorded in Belgium, Lithuania, the Netherlands, Denmark, Germany, Ireland, Hungary and Sweden. 

Milk prices remained stable or rose slightly in six EU countries: Malta, Finland, Spain, Cyprus, Croatia and Greece. 

GDT auctions take place every two weeks and are regarded as one of the most important global benchmarks for dairy product prices, influencing both exporters and importers worldwide.