The GlobalDairyTrade index dropped 2.6% in this morning’s auction.
The price of anhydrous milk fat increase .6%; butter dropped 4.9%; butter milk powder dropped 8.6%; cheddar was down 3.3%; milk protein concentrate fell 7%, rennet casein was down 4.3%; skim milk powder went down 4.4% and whole milk powder was down 1.6%.
This doesn’t mean the sky is falling.
The price is still above the long term average.
The lower price is just reflecting greater supply here and overseas, in particular in the USA where a reduction in the demand for crop for biofuels has made cattle feed cheaper.
It does however, mean that sensible dairy farmers will be budgeting on a lower payout next season.