Global prices up by 60% from 1 August

Prices at the Global Dairy Trade auctions have increased by 60% since the beginning of August. Prices at the latest sale on 6 October were up 9,9% from the previous sale on 15 September. The GDT trade-weighted index is now at 837 at its highest level since March 2015 and up 10% on the price in October 2014. With the exception of butter (-2,3%), prices for all categories of dairy have increased. Skimmed milk powder increased by 13,4%, full-cream milk powder by 12,9% buttermilk powder by 13,8% and cheddar by 0,5%. According to MPO economist Dr Koos Coetzee, the higher global prices is an indication of uncertainty about the future supply of dairy products, especially as production growth is slower than expected in major exporting countries. The weaker rand further increased the price of imported products in South African terms.