News Dairy
Global Dairy Trade to lowest level since 2020
The trend also continues to fall on the first Global Dairy Trade of 2023. Skimmed milk powder in particular has taken quite a hit, which is probably related to reduced Chinese buying interest now that the country is in the grip of corona.
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The dairy market is having difficulty finding a bottom. The results of the Global Dairy Trade confirm that the trend will continue to be downwards in the new year. The average price drops by 2,5% to $3,365 per tonne. This is the lowest level since the last auction of 2020, more than two years ago. The peak that the dairy market experienced in recent months has therefore been completely canceled out.
Price-pressing factors
The price pressure is a combination of factors. Milk increase in the European Union and the United States combined with a drop in demand on consumer markets due to high inflation. The unrest in China due to corona is also not helping, and this can be seen as a new argument for further price drops in the short term.
Probably for this reason, the Global Dairy Trade quotation for skimmed milk powder today falls by 4,3% to $2,838 per tonne, also the lowest level since the end of 2020. The decline of 1,4% for whole milk powder to $3,208 per tonne is somewhat more moderate out. Cheddar and butter also suffer damage. Butter drops 2,8% to $4,479 per tonne, while cheddar loses 2,7% to $4,690 per tonne.
Dairy products are traded on the GDT from buyers and sellers all over the world. This means that the downward pressure is probably also felt in Europe. During the first days of 2023, trading on the European dairy market is weak, although this is probably due to the holiday period that is still going on this week.