News Dairy
Dairy auction Global Dairy Trade closes 2022 in minor
The Global Dairy Trade has shown a slight market recovery in the past two auctions, but price pressure will resurface during the last dairy auction of 2023. The milk powders in particular have been marked down considerably.
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The price of skimmed milk powder drops by 4,8% to $2.965 per tonne. Whole milk powder drops 4% to $3.246 per tonne. This price drop is striking, because the European milk powder market in particular seemed to be bottoming out in recent weeks. Now that GDT prices are falling again, this is no indication for milk powder prices in Europe. Especially because New Zealand's product is now more competitive on paper on the world market.
Butter and cheese also don't keep it dry. Butter fell 2,6% to $4.602 per tonne. Cheddar recorded a limited decline of 0,7% to $3.246 per tonne. On the world market level, New Zealand butter remains by far the cheapest. In dollar terms, New Zealand product is actually about $700 per tonne cheaper. The price difference has been around for some time, so volumes have been shipped from New Zealand to Europe in recent months.
The prices of the most important manufacturers end the year lower than the level at which 2022 started. In between, prices managed to peak high, but sentiment on the global dairy market is now much more subdued.