The good news on the dairy markets continued this week with strong gains for powders and cheese while butter maintained its top price.

On the spot market, whole milk powder (WMP) increased in price by €30/t to hit €3,785/t while skim milk powder (SMP) increased by €25/t to high €2,450/t.

There was also strong gains for cheese – a star performer over the last month with cheddar increasing in price by €45/t.

These price gains come on the back of a strong rally in dairy markets over the last month or so, buoyed by relatively strong increases at the Global Dairy Trade (GDT) auction.

Although last weeks’ GDT price increase of 1.7% didn’t set the world alight, it’s still a good signal. The PPI also increased for May which is another good sign.

The poor weather is not only affecting milk supply in Ireland, it also having a knock on effect elsewhere with supplies back in the UK and on the continent.

British milk volumes are currently running about 1.3% behind the same time last year. Wet weather right across Europe is also having an impact, even if not impacting straight away.

Farmers in the Netherlands and Germany are having trouble making silage so that could impact future supplies if quality is poor. In contrast, Polish farmers are going a lot better and production there is up 4.5% in the first four months of 2024.

Further afield Australia is also having a good year, with milk supplies up 2.5% in April. Heavy rainfall and catastrophic flooding in South America has the USDA predicting that milk volumes will be affected in Brazil, Argentina and Uruguay.