Agriland.ie: Latest GDT Auction Sees a Drop in International Dairy Prices

International dairy prices have fallen for the second consecutive auction in the latest Global Dairy Trade (GDT), posing a challenge for dairy farmers across the world. The decline could negatively impact the profitability of dairy producers, as they face constant fluctuations in the market. This news has caused concerns among industry experts and stakeholders, who are now closely monitoring the situation and its potential impact on the global dairy market. In this article, we will delve into the factors driving this decline in dairy prices and explore its implications for the dairy industry.


The latest Global Dairy Trade (GDT) auction, owned by Fonterra Cooperative Group, European Energy Exchange, and New Zealand’s Exchange, saw a drop in international dairy prices on Tuesday, March 21. The GDT index fell by 2.6% compared to the previous auction results, with the average price slightly decreasing to $3,361/MT. The 148 bidders participated in this event 328 and traded 26,795 MT of products, including anhydrous milk fat, butter, and whole milk powder. Dairy products, particularly cheddar, experienced another drop in price, with cheddar falling by 10.2% to $4,052/MT. Anhydrous milk fat also fell back by 3.8% to $5,150, while butter dropped by 3%. Skim milk powder decreased by 3.5% to $2,648, and whole milk powder fell back by 1.5% to an average price of $3,228. The results reflected the trend of the dairy commodity prices being on a downward direction since the beginning of the year due to flattened demand, taking the heat out of the record prices of 2022. Tirlán, Kerry Group, Lakeland Dairies, and Dairygold all reduced their milk prices in Ireland due to weaker dairy market conditions and increased global milk supplies. The Irish Farmers’ Association (IFA) and the Irish Creamery Milk Suppliers’ Association (ICMSA) warned that further milk-price cuts would be unsustainable for farmers, especially as input costs, including fertiliser prices, have not significantly fallen.


In conclusion, the decline in international dairy prices during the latest GDT auction, despite the decrease in supply, is a significant concern for dairy farmers worldwide. While the reasons behind the decline range from weaker demand to trade war uncertainties, it highlights the volatility that exists in the global dairy market, and the importance for farmers to remain vigilant and adaptable. As we move forward, it remains to be seen whether the market will rebound, or if farmers will be forced to weather the storm. Regardless, the industry must work together to find ways to improve market stability and ensure the long-term viability of the global dairy sector.