GDT: Dairy prices continue to rise in 2024 with 2.3pc increase at second event

The GDT is having a positive start to 2024. Photo / Christine McKay

Prices continue to rise in the latest Global Dairy Trade auction for 2024, held overnight, with a 2.3 per cent increase across the board.

This is the second positive event for 2024, with the index kicking off the new year with a 1.2 per cent bump on January 3.

Whole milk powder was up 1.7 per cent to an average of US$3353/MT and skim milk powder — Fonterra’s second-biggest reference product — had a similarly modest increase of 1.2 per cent, to an average of US$2638/MT.

Cheddar gained 1 per cent to an average of US$4217/MT and lactose also rose 1.3 per cent to an average of US$760/MT — a significant improvement on the last event when it plummeted 5 per cent to an average of US$753/MT.

Butter was the winner on the day, with an impressive 5.8 per cent jump to an average of US$5906/MT.

Anhydrous milk fat was close behind, rising a respectable 4.3 per cent to an average of US$5842/MT.

Not so lucky was mozzarella, which dropped 3.3 per cent to an average of $US3830/MT.

This is the third time the product has been included in the auction, having been introduced in the December 6 event where it debuted at an average of US$4005/MT.

The price index of mozzarella remained the same on the first auction of 2024.

Buttermilk powder was not offered at this event.

A total of 24,909MT of product was purchased by 100 successful bidders, compared with 26,206MT and 115 winning bidders last time.

On December 7, Fonterra raised its forecast farmgate milk price for 202-/24 — to a range of $7-$8 per kgMS, with a midpoint of $7.50.

This is 25¢ up on Fonterra’s previous $7.25 midpoint, announced on October 9, with a range of $6.50-$8 per kgMS.

This followed downgrades on August 18 to between $6 and $7.50 per kgMS, with a midpoint of $6.75, and August 4 of between $6.25 to $7.75 per kgMS.