Business Dairy
Global Dairy Trade significantly higher again
The dairy market had already started the new year well and the Global Dairy Trade on Tuesday, January 19, is adding to it. Since the summer of 2014, the average price was no longer so high...
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The average price at the auction, organized by Fonterra, rose 4,8% to $3.593 per tonne. As with previous auctions, the milk powders catch the eye. The price of whole milk powder rose by 2,2% to $3.380 per tonne, the price of skimmed milk powder even by 7% to $3.243 per tonne. This is also the highest level since 2014. The price rebound is likely due to Chinese buying interest, which has been driving GDT prices to higher levels for some time.
Butter up, cheddar steady
The butter price also rose by 4,6% to $4,735 per tonne. The price has risen continuously since September. The increase is positive for European exporters, who will see their competitive position improve on the global market, which can result in higher export volumes. The first signs of this are already visible, butter exporters indicate. The cheddar quotation escapes the price violence and remains virtually stable (-0,3%) at $4.82 per tonne.
The higher GDT can be seen as a confirmation of the positive market sentiment on the global dairy market, something that was also clearly reflected in the Netherlands last week.