This morning’s GlobalDairyTrade auction showed a welcome reversal of this year’s trend for dairy prices with a 7.8% increase in the trade-weighted index.
The price paid for anhydrous milk fat increased 14%; buttermilk powder was up 10.2%; cheddar was up 8.8%; milk protein concentrate increased by 15.4%; rennet casein was up 4.7% skim milk powder increased 7.3% and whole milk powder increased by 7%.
This increase takes the price back to around the long term average.
One reason for the increase could be the drought in the USA. That usually depresses the price of beef because the market is flooded by farmers culling stock, and increases dairy prices because of a decrease in supply.