Latest news with #GDTPriceIndex
NZ Herald
06-08-2025
- Business
- NZ Herald
Rising confidence: Whole milk powder tops US$4000/tonne in August, signals strong dairy season
The thick end of the dairy season has started strongly. Reminder, this is a Premium article and requires a subscription to read. Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech. The thick end of the dairy season has started strongly. Whole milk powder prices have broken through US$4000/tonne for the first time in an August month since 2013, according to NZX Dairy data. Farmers can take confidence from this morning's auction, which registered a 0.7% increase on the GDT Price Index, especially against the background of already strong milk production and the extra volume put on the platform by dairy giant Fonterra. August is when milk production steps up significantly, en route to the seasonal peak months of September through to January. Whole milk powder – which has the biggest influence over Fonterra's farmgate milk price – rose by an average 2.1% to US$4012 a tonne at this morning's auction. Skim milk powder, which ranks second, firmed in price by 0.4% to US$2805/tonne.
Agriland
20-05-2025
- Business
- Agriland
GDT price index dips slightly
The average Global Dairy Trade (GDT) price index dropped by 0.9% following the latest auction today (Tuesday, May 20). There were a total of 177 bidders in the event which saw 15,194 metric ton (MT) of product sold. The average selling price was €4,075 per metric ton in the auction, which lasted for nearly two hours, during which there were 110 winning bidders and 15 bidding rounds. The GDT Price Index now stands at 1,333 today – compared to the previous index figure on May 6 which was 1,344. Source: GDT (May 20) The GDT auction, which is held twice in every month, is a trading platform for core dairy products. There were some sharp falls in price for products which earlier this month had enjoyed a strong performance. In the graphic (below) the shaded dials indicate the proportion of each product group sold versus total quantity sold during the previous 12 months, with a three month lag. Figures within the dials represent the percentage change in GDT price index and the weighted average price. Source: GDT (May 20) GDT auction The latest downbeat performance at the GDT auction today by five out of eight of the traded commodities will not be a welcome development for processors or dairy farmers. Last week Kerry Dairy Ireland warned that while global demand for dairy remains 'resilient', the ongoing US tariff actions are putting pressure on the US Dollar. 'As a result, European export prices are losing competitiveness with the US and New Zealand,' it said. Separately Dairygold yesterday (May 19) also stated that global milk production continues to be relatively steady, but 'buyers remain cautious amid the threat of tariffs'. 'Despite the ongoing and significant geopolitical challenges, dairy markets have been reasonably stable. 'Butter prices have maintained their strong price levels, although other dairy products have been less robust,' it outlined.
Agriland
12-05-2025
- Business
- Agriland
Lakeland Dairies sets milk price for April
Lakeland Dairies today (Monday, May 12) confirmed that the price it will pay for milk supplied in April will remain unchanged. A base price of 48.75c/L – based on 3.6% butterfat and 3.3% protein – will be paid for April milk in the Republic of Ireland (ROI) – which is inclusive of the 0.5c/L Sustainability Incentive Payment. The co-op said that the base price has been held from last month. Meanwhile in Northern Ireland (NI), a base price of 39.8p/L will be paid for milk supplied in April which is inclusive of the 0.5p/l Sustainability Incentive Payment. The base price has been held from last month. Lakeland Dairies According to the Lakeland Dairies Board 'global dairy markets remain relatively stable at present despite geopolitical tensions and uncertainty over the global economic performance'. However it added: 'Crucially, the supply/demand dynamic remains largely in balance, which is providing market stability. 'Lakeland Dairies will continue to monitor the markets and will endeavour to support our farmers as best we can'. The co-op's position on global dairy market is underlined by the results of the latest Global Dairy Trade (GDT) auction, which saw the price index increase by 4.6% last week. The GDT Price Index rose to 1,344 – compared to the previous index figure on April 15 which was 1,285. But the group chief executive officer (CEO) of Lakeland Dairies did also highlight to Agriland last month that US President Donald Trump's policy on tariffs has created a 'huge level of uncertainty' Colin Kelly said that, while Lakeland is not as directly exposed to the tariffs as other businesses may be, the impact of President Trump's decision – and how the EU responds – on the global economy is the more pressing concern for the dairy business. Lakeland, as a processor with facilities and milk suppliers in both the Republic of Ireland and Northern Ireland, is also faced with the challenge of having to observere two different tariff rates, as the US president announced a 10% tariff for the UK but 20% for the EU.
Agriland
07-05-2025
- Business
- Agriland
Dairy markets: Ornua PPI sees another drop for April
The Ornua Purchase Price Index (PPI) has seen another decrease in the latest figure for April, the dairy business has said. The PPI figure stands at 156.9 for last month, down from 159.6 for March. After deducting the estimated processing costs for Ornua's member processing costs, the latest PPI implies an indicative return of 46.3c/L, inclusive of 5.1% VAT, for milk at 3.6% fat and 3.3% protein. This price is net of Ornua's costs to market. The figure is down on the indicative price for March of 47.4c/L. The estimated processing costs for member dairy co-ops for the second quarter of the year is 9.6c/L, up from 9.5c/L for the first quarter. The updated processing cost was used for determining the indicative return for April. The estimated processing costs are based on Ornua's estimate of the average cost of processing the Ornua 'basket of products', which is not representative of any individual member co-op processor. The processing costs excludes any allowance for member co-op processor margin. In determining the cost, Ornua used its initial estimate of member co-op processing costs from 2020 as a base and links the variable elements of the costs to external indices which will be updated quarterly in arrears. The processing costs will rise and fall quarterly in line with the movements in the variable costs (most notably energy) in the external indices. Ornua said that the decreased PPI and indicative price 'reflect weaker market returns for the month of April'. In addition to the PPI announcement, Ornua also confirmed that the 'Ornua value payment' to member co-ops in the month of April is €11.8 million, which equated to 6% of gross purchases in the month. Dairy markets In other dairy market news, the average Global Dairy Trade (GDT) price index increased by 4.6% following the latest auction yesterday (Tuesday, May 6). There were a total of 175 bidders in the event which saw 16,714 metric ton (mt) of product sold. The average selling price was €3,988/mt in the auction, which lasted for more than three hours, during which there were 101 winning bidders and 26 bidding rounds. The GDT Price Index now stands at 1,344 today – compared to the previous index figure on April 15 which was 1,285.
Agriland
06-05-2025
- Business
- Agriland
GDT price index moves up by 4.6%
The average Global Dairy Trade (GDT) price index increased by 4.6% following the latest auction today (Tuesday, May 6). There were a total of 175 bidders in the event which saw 16,714 metric ton (MT) of product sold. The average selling price was €3,988 per metric ton in the auction, which lasted for more than three hours, during which there were 101 winning bidders and 26 bidding rounds. The GDT Price Index now stands at 1,344 today – compared to the previous index figure on April 15 which was 1,285. Source: GDT (May 6, 2025) The GDT auction, which is held twice in every month, is a trading platform for core dairy products. Today's top performers were lactose and cheddar – both achieved a double digit increase in price. But there was a disappointing result for mozzarella which dropped by 0.3%. In the graphic (below) the shaded dials indicate the proportion of each product group sold versus total quantity sold during the previous 12 months, with a three month lag. Figures within the dials represent the percentage change in GDT price index and the weighted average price. Source: GDT (May 6, 2025) The upbeat performance by seven out of the eight traded commodities is a good indicator of demand although market uncertainty remains on the horizon. Outlook Last week Seán Molloy, the CEO of Tirlán, told Agriland that milk supply has not picked up across the world in the way that farmers 'might have been envisioned it would'. He believes that 'difficult supply' in parts of Europe is helping to create demand/supply tension which is 'always helpful' as a supplier. Molloy is optimistic that 2025 will be a 'positive year' from a farming and milk price perspective. But he has also warned that 'there are high levels of geopolitical and wider economic turbulence with new alliances being formed at a global level'. 'We expect the volatility to continue in the months ahead,' the CEO of Tirlán stated.
