- GDT records a third consecutive price increase, this time by 4.4%.
- Despite the increases, prices for dairy products are still low worldwide.
- The next few months will show whether demand will increase sustainably.
Third increase in a row at GDT
Another Global Dairy Trade (GDT) auction took place on October 3, 2023, with the index increasing by 4.4%. This is the third significant increase in a row – the index rose 2.7% on September 5 and 4.6% on September 19.
Alex Winning, a dairy market analyst, points out that milk production in the U.S., EU, New Zealand and South America is struggling due to rising costs and extreme weather conditions, leading to a decline in supply of many dairy products. Still, the auction results are encouraging for farmers – the increase in global milk prices is welcome, especially as the industry enters the peak milk production season.
Auction increases do not equate to high prices
However, it is important to point out that global dairy prices remain low, even though we are seeing increases at auction. They have been falling in recent months, and demand has been low. To find out if there has finally been a breakthrough in the market, we need to watch prices in October and November. We may not see an increase in global demand, but just a temporary interest from buyers due to low prices.
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