GDT down 2.6%

The GlobalDairyTrade index dropped 2.6% in this morning’s auction.

gdt 2

 

 

 

 

 

 

 

 

 

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%.

gdt 3

 

 

 

 

 

This doesn’t mean the sky is falling.

The price is still above the long term average.

gdt 1

 

 

 

 

 

 

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.

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