Global Dairy Trade Index Drops 4.9%, EU Milk Prices Continue to Fall

Global dairy prices continued their downward trend, with the latest Global Dairy Trade (GDT) auction seeing a significant 4.9% drop in its overall price index. The steepest decline was observed in the cheddar price index, which plummeted by 12.3%.

Other key dairy commodities also experienced price reductions. Skimmed milk powder prices fell by 7%, butter by 5%, and whole milk powder by 4.4%. Prices for anhydrous milk fat decreased by 3.9%, and lactose saw a 3.6% drop. However, the auction did see some positive movement, with the mozzarella cheese price index rising by 3.8% and buttermilk powder increasing by 8.2%.

Data from the European Commission's Milk Market Observatory reveals a concerning trend for milk producers. The average milk collection price in the European Union from January to May stood at 43.5 cents per kilogram. This figure represents an 18.5% decrease compared to the same period last year and is 5.4% lower than the five-year average for the same timeframe.

May marked the eighth consecutive month of declining average milk collection prices across the EU. The most substantial year-on-year price drops were recorded in Belgium, Lithuania, the Netherlands, Denmark, Germany, Ireland, Hungary, and Sweden. Conversely, milk prices remained stable or saw slight increases in Malta, Finland, Spain, Cyprus, Croatia, and Greece. The GDT auctions, held bi-weekly, serve as a crucial global benchmark for dairy product prices, influencing both exporters and importers worldwide.