Business Dairy
Butter and Cheddar Down at GDT Auction
The butter price has suffered again during the Global Dairy Trade that took place today (May 5). Just like cheddar. The milk powders do not sink further, which can be seen as...
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The butter price fell 5,8% to $3,867 per tonne. This is the lowest level since December 2018. The significant downgrade is no surprise, because European and American quotes have fallen sharply in recent weeks. New Zealand butter is still considerably more expensive on the world market. The same goes for Cheddar, which lost 6,8% to $4,115 per tonne.
The prices of whole and skimmed milk powder remain virtually stable (+0,1%) at $2.745 and $2.373 per tonne respectively. Just as in Europe, the price pressure on milk powders has also faded into the background on the GDT, although at the same time there is little prospect of recovery.
Milk price forecast down
New Zealand's ANZ Bank, the country's leading agricultural financier, has lowered its milk price forecast for the new season by 70 cents to $5,75 per kilo of milk solid. The bank refers to the poor sentiment on the world dairy market. The forecast for the current season remains unchanged at $7,15 per kilo of milk solid. Fonterra has also indicated that the milk price is under pressure.