GDT catches up with the market

Published 12 September 16

Dairy wholesale prices have been increasing globally for a number of weeks, while, up until recently, prices on the GDT had been lagging behind. The recent increases seen on the GDT have now closed the gap with prices for similar products in the US and Europe.

The above chart shows how prices on the GDT are now significantly closer to international prices compared to the beginning of August. For instance, butter and Cheddar prices were almost $2,000/tonne and $1,000 per tonne lower, respectively, compared to US prices at the beginning of August and were also lower than EU prices. Since then, this price gap has narrowed significantly with GDT and EU prices now almost on a level playing field for all four of the above products.

US prices do continue to earn a premium compared with EU and GDT, with the exception of SMP, although that premium is now being eroded.