Global Dairy Trade price tumbles 5.2%

The price index at Fonterra’s Global Dairy Trade auction tumbled for the third event running, falling to its lowest level since last June.

The average winning price on 18 March was US$4,563/t (£2,749), pulling the price index down 5.2%.

A fortnight ago the index fell 4% after it dropped 1.2% on 18 February.

The total product offered dropped slightly after last week’s strong recovery, with 39,008t sold, down from 41,806t at the last auction.

All commodities apart from butter milk powder and milk protein concentrate saw prices drop.

Individual product results were:

• Butter sold at a weighted average price of $4,534/t (£2,731) and the index was down 4.4%
• Cheddar sold at a weighted average price of $4,641/t (£2,796) and the index was down 4.1%
• Anhydrous milk fat sold at a weighted average price of $4,578/t (£2,758) and the index was down 10.7%
• Buttermilk powder sold at a weighted average price of $5,253/t (£3,165) and the index was up 4.6%
• Skimmed milk powder sold at a weighted average price of $4,584/t (£2,758) and the index was down 1.7%
• Whole milk powder sold at a weighted average price of $4,439/t (£2,761) and the index was down 5.8%
• Milk protein concentrate sold at a weighted average price of $8,837/t (£5,324) and the index was up 3.7%
• Rennet casein sold at a weighted average price of $10,533/t (£6,346) and the index was down 10.7%
• No lactose was offered

GDT – owned by New Zealand co-op Fonterra – holds two online auctions each month, with dairies from Europe, India, USA, New Zealand and Australia selling commodities to buyers from more than 90 countries.

Arla started selling British skimmed milk powder from Westbury at the auction in December.