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GDT Index declines

After four-consecutive increases, the overall index declined 3 percent at the Global Dairy Trade auction on Tuesday.

Butter was 11.1 percent lower from the last auction, whole milk powder was 4.6 percent lower, skim milk powder was 4.5 percent lower, lactose was down 3.8 percent and cheddar cheese slipped 2.2 percent. Rennet casein was 2.1 percent higher, anhydrous milk fat increased 2.4 percent and butter milk powder was up 3.2 percent from the last sale.

The index is at 811, down 26 points from the last sale but 297 points above the all-time low set on August 4^th.  Read the full GDT report here:

Conducted on the first and third Tuesday of the month, dairy processors from the U.S., Europe, India, New Zealand and Australia offer eight types of dairy products for sale. The auction is seen as a price discovery mechanism for global dairy trade.

 

Low milk prices and high beef prices have prompted increased culling of the dairy herd in New Zealand. The Beef+Lamb economic service, New Zealand’s checkoff organization tells NZFarmer dairy cow slaughter is up 27 percent this year. In addition, heifer kill is 11 percent higher.

There were 6.7 million dairy cattle including 4.9 million cows milking in New Zealand at the end of 2014. If the slaughter numbers continue the current trend, it would result in the first decline in New Zealand’s dairy herd since 1991-92.