Global dairy markets took another bruising this week, as the latest Global Dairy Trade (GDT) auction recorded its sharpest fall since September.
It extends a run of eight consecutive declines and underscores the pressure of worldwide oversupply.
The New Zealand-based auction, widely regarded as a bellwether for international dairy sentiment, dropped by an average of 4.3% compared with the previous event.
Most products slipped, but the steepest fall came from butter, which plunged by a dramatic 12.4% to an average of US$5,169 per tonne.
Converted at today’s exchange rate, that equates to around £3,886 — dragging the already-struggling butter market further below last week’s UK wholesale figure of £4,290.
The fall will add fresh pressure to British processors already contending with tight margins and muted demand.
Anhydrous milk fat (AMF) also weakened sharply, losing 9.8% as global fat prices continued their downward slide.
Powders saw more modest declines, with whole milk powder slipping by 2.4% and skimmed milk powder down 1.6%.
These movements will be noted by UK buyers, many of whom use GDT trends as part of their forward planning for ingredients and contracts.
Cheddar was the one bright spot, rising 7.2% to US$4,639, offering a brief lift for hard-pressed cheesemakers. However, the volume traded at that higher level was limited.
Global milk output remains high and stocks continue to accumulate — a combination that is keeping prices firmly under pressure.
