Business Dairy
GDT results boost for troubled dairy market
The result of the Global Dairy Trade (GDT) that took place today can be seen as a bright spot for the troubled dairy market...
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The average price index shows a plus, of 1,2% to $2.969 per tonne. While some analysts expected a significant loss, just like in the last few editions. Of the 22.880 tons of product offered, more than 20.000 tons were traded.
Inexplicable plus for butter
The significant increase in butter (+4,5% to $4.263 per tonne) is striking and cannot be easily explained. In any case, it does not match the negative market sentiment in Europe and the US. New Zealand is now at a competitive disadvantage in the global market.
The higher exchange rate for whole milk powder (+2,1%) offers perspective, as New Zealand is the largest exporter on the world market. It will become clear in the coming days whether the positive GDT result will provide a stimulus to the negative market sentiment in Europe.