International milk prices fell while volumes were up at this month’s first Global Dairy Trade (GDT) auction on Tuesday.

The GDT Price Index was down 4.3%, with an average selling price of $3,100 per metric ton. The index fell 1% at the previous auction on July 18, with an average selling price of $3,289, according to GDT Events.

A total of 32,613 tons of dairy products were sold at the latest auction, up about 25.6% from the previous sale, the auction platform said.

The results could affect the New Zealand dollar NZD= as the dairy sector generates more than 7% of the nation’s gross domestic product.

Key Results

AMF index down 0.5%, average price US$4,705/MT
Butter index down 0.7%, average price US$4,680/MT
BMP index up 9.9%, average price US$2,207/MT
Ched index down 1.4%, average price US$3,910/MT
LAC not offered
SMP index down 1.4%, average price US$2,454/MT
SWP not offered
WMP index down 8.0%, average price US$2,864/MT

The New Zealand milk co-operative, which is owned by about 10,500 farmers, controls nearly a third of the world dairy trade.

GDT Events is owned by New Zealand’s Fonterra Co-operative Group Ltd, but operates independently from the dairy giant.

U.S.-listed CRA International Inc CRAI.O is the trading manager for the Global Dairy Trade auction, which is held twice a month, with the next scheduled for Aug. 15.

Source : Reuters and GDT website : Aug 1st 2023