Global Dairy Market Crash July 16, 2015 12:00 am The latest Global Dairy Trade Auction on the 16th July saw prices fall by 10.7%; the largest fall since April 2014 and the 9th consecutive drop. The weighted average price now stands at $2,082 per tonne. Whole Milk Powder prices have almost halved in the past year. The pain looks unlikely to stop when the next auction takes place on the 4th August. Volumes of product offered are set to rise by over 50%, meaning further price falls can be expected. The impact is also be felt closer to home with a number of producers announcing prices cuts in July and August. The table below shows some of the standard litre prices for August; Processor ppl Meadow Foods 20.00 Muller Wiseman (non-aligned) 23.15 Paynes Dairies 21.70 Arla Directs 21.00 It should be noted that ‘B’ prices are being paid at lower levels than this with 14-17ppl not uncommon. Around 100 farmers supplying Grahams’ Dairies will face ‘B’ price of just 7ppl. An increase in cullings could now be seen to help cut output – both in the UK and further afield.
