Following the results of the latest Global Dairy Trade (GDT) auction today, Tuesday, July 7 - which saw an increase in the overall index of 8.3% - calls have been made for co-ops to increase June milk prices by at least 1c/L.
Tom Phelan, the National Dairy Committee chairperson of the Irish Farmers' Association (IFA), said that the "whopping" increase in the index is "the clearest indicator yet that the market is recovering, as global markets reopen and food service demand recovers post-lockdown.
"Whole milk powder prices are up a whopping 14%, with butter up 3.0%; SMP [skim milk powder] up 3.5%; and cheddar cheese up 3.3%," Phelan outlined.
This is a strong vote of confidence by traders in the global dairy demand for the next five to six months.
"After several weeks of steady European spot and average market price increases for the main commodities, I believe this is the most decisive indicator yet to show that confidence and demand are returning to dairy markets," the IFA dairy chairperson argued.
"Co-ops will be deciding their milk price for June milk within a week or 10 days. This extremely positive GDT result must encourage them to return at least an additional 1c/L to their suppliers," Phelan insisted.
4th consecutive increase
Today's increase in the GDT index was its fourth increase in a row.
Lasting two hours and 31 minutes, today’s event - event 263 - saw 174 participating bidders go head-to-head across 17 bidding rounds, with 109 winning bidders emerging.
A total of 25,688MT of product was sold on the day.
- AMF index down 0.2%, average price US$3,981/MT;
- Butter index up 3.0%, average price US$3,717/MT;
- BMP index up 3.8%, average price US$2,417/MT;
- Ched index up 3.3%, average price US$3,762/MT;
- LAC index up 1.9%, average price US$1,309/MT;
- SMP index up 3.5%, average price US$2,694/MT;
- SWP index not available, average price not available;
- WMP index up 14.0%, average price US$3,208/MT.