The global dairy market is more positive. In Lithuania, it is much gloomier
Average farm-gate milk prices in Lithuania have fallen for two consecutive months, and Lithuania has lost one place in the European Union on this indicator in one month, dropping from 14th to 15th place. Global markets, on the other hand, are showing more positive than negative trends.
We drop one place
The downward trend in the mood of Lithuanian milk producers is no coincidence. Our country dropped one place below the rest of the EU in terms of average raw milk procurement prices in April this year, according to the latest European Commission data for April.
Lithuania now ranks 15th with a price of €51.76 per 100 kg. In March, the average farm-gate milk price was €52.94.
In April, the average farm-gate price in the EU was €53.40. This means that until recently, Lithuanian milk producers were receiving a slightly higher price than the EU average, but now the situation is helping to change.
The highest milk prices in April were paid in the EU countries with traditionally higher farm gate prices, Cyprus (€66.96) and Malta (€60.71). Farmers in Slovakia (€44.67) and Portugal (€46.13) saw the lowest prices. Farmers in neighbouring Poland received a price of €53.92, while those in Latvia and Estonia received €48.43 and €52.80 respectively.
There is still room for growthThe mood on the global market is slightly more positive than in Lithuania, as the last trading sessions of the dairy trading platform "Global Dairy Trade" (GDT), operated by the New Zealand cooperative "Fonterra", have been more or less positive.
Two weeks ago, the GDT index was up by as much as 4.6%. And although the index was down by 0.9% (to 1 333 points) in the last trading session, overall we are observing an upward trend in the index. Dairy products are becoming more expensive and buyers are willing to pay more for them.
The GDT“ index is now at its highest level since 21 June 2022 (when it stood at 1 342 points). This is the highest it has been in the last 3 years.
The long-term technical analysis of the index also tells us that the upward phase is not yet over. The GDT index still has around 15-20% upside potential, but in the short term it is already worth looking out for a price correction in the next 1-2 trading sessions.
If we talk about individual dairy products, only Mozzarella cheese (+0.7%) and the less significant buttermilk (+0.9%) appreciated in the last trading session. For their part, the price of Cheddar cheese (-9.2%) and both skimmed and whole milk flour (-0.7% and -1.0%, respectively) fell sharply. Lactose recorded a double-digit negative performance (-13.2%). Butter decreased by 1.5%
