The recent downward spiral in dairy prices looks set to have a significant impact on farmers incomes.
Today's GDT auction saw dairy prices around the world fall to the lowest in seven months, with warnings that this could have an adverse effect on farmers’ incomes. This represents the third consecutive price drop in Global trade, with the GDT index decreasing by 3.5%.
This is being put down in part to the decrease in demand for WMP in the Asian markets. Whole Milk sales fell considerably in China recently, aiding in the overall drop of 5.5%. Skimmed Milk Prices fared well at the auction this week, with prices up by 1.2%.
Butter was down 3.6% on previous trade, with butter milk powder seeing a 7.2% increase. Cheddar also saw decreases, down by 2.8%.
Farmers are now nervous at the prospect of these prices affecting their bottom line, with many organisations warning the next two auctions will be vital in determining future cuts. The average selling price at today’s auction, held this morning, was $3,105 per tonne.
The auction saw over 35,000 tonnes, which represents a decrease of 1.7% from the previous one. There were 554 bidders on total, 165 of which were participating.
Are farmers set to take the hit through their incomes?
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