News Dairy
Global Dairy Trade breaks negative trend
For months, the Global Dairy Trade was in a downward spiral, but today (September 6) it broke. Butter, cheese and milk powder are taking steps again.
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Since the end of February, the Global Dairy Trade has shown almost continuous declines. Only in June did the index record a small plus, but otherwise there were reductions. The average price increase of 4,9% shown on the signs can therefore be seen as a trend break.
Whole milk powder stands out
Whole milk powder has seen the largest price increase of 5,1% to $3.610 per tonne. Skimmed milk powder also recorded a plus of $3.575 per tonne. The higher milk fat prices are also striking. For example, butter rises by 3,3% to $5.369 per tonne, while AMF rises by as much as 13,9% to $5.677 per tonne. Cheddar is also trading higher: +1% to $5.046 per tonne.
The price increases come as milk production in New Zealand increases seasonally. At the same time, supply is behind last year. The GDT is also likely to benefit from low inventories for almost all dairy products. In addition, the improving prices suggest renewed purchasing interest in China.