The average Global Dairy Trade (GDT) price index dropped by 0.9% following the latest auction today (Tuesday, May 20).

There were a total of 177 bidders in the event which saw 15,194 metric ton  (MT) of product sold.

The average selling price was €4,075 per metric ton in the auction, which lasted for nearly two hours, during which there were 110 winning bidders and 15 bidding rounds.

The GDT Price Index now stands at 1,333 today – compared to the previous index figure on May 6 which was 1,344.

The GDT auction, which is held twice in every month, is a trading platform for core dairy products.

There were some sharp falls in price for products which earlier this month had enjoyed a strong performance.

In the graphic (below) the shaded dials indicate the proportion of each product group sold versus total quantity sold during the previous 12 months, with a three month lag.

Figures within the dials represent the percentage change in GDT price index and the weighted average price.

The latest downbeat performance at the GDT auction today by five out of eight of the traded commodities will not be a welcome development for processors or dairy farmers.

Last week Kerry Dairy Ireland warned that while global demand for dairy remains “resilient”, the ongoing US tariff actions are putting pressure on the US Dollar.

“As a result, European export prices are losing competitiveness with the US and New Zealand,” it said.

Separately Dairygold yesterday (May 19) also stated that global milk production continues to be relatively steady, but "buyers remain cautious amid the threat of tariffs".

"Butter prices have maintained their strong price levels, although other dairy products have been less robust,” it outlined.