GLOBAL - The latest Global Dairy Trade (GDT) auction has registered a fall in price index of 7.9 per cent from the previous auction, making this the third event to show a price fall in a row.
The GDT price index averaged $2,345 (USD/MT, FAS).
Skim Milk Powder and Whole Milk Powder were down by 8.1 per cent and 11.1 per cent respectively, the largest falls of the event.
The Cheddar price fell by 5 per cent, whilst Butter prices rose by 5.6 per cent. The Butter Milk Powder price registered a decline of 1 per cent.
In contrast to the current declines, the GDT price index exhibited strong rises between August and October.
UK levy board AHDB Dairy commented that although global production is now starting to slow down, the large supplies that have been built up during the downturn mean a recovery in prices may be a while off.
"SMP [Skim Milk Powder] levels are particularly high with EU stocks forecast to more than double in 2015, reaching just over 350k tonnes by the end of the year. These stock burdens are expected to keep pressure on prices during the first half of 2016, even after milk supplies tighten," AHDB Dairy said.
TheCattleSite News Desk