News Dairy
Global Dairy Trade returns part of the profit
This week's Global Dairy Trade (GDT) auction had to return some of the profits from the previous auction. Then the index rose by 3,16%, this time it fell again by 1,53%.
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The traded volume also fell. From 32.582 tons then, the total traded product this time rose to 30.693 tons. The price of the powders dropped, as did butter oil. Prices for butter and cheddar were on the rise
The price of skimmed milk powder fell by an average of 2,4% to $2.769 per tonne, but not all origins lost the same amount.
European origin more expensive
New Zealand milk powder is usually more expensive than product from elsewhere, but this time more was paid for European product than for Fonterra's 'own' product. The difference was about €45 per tonne for milk powder with delivery in April. Several contracts were sold at a price of $2.815 per tonne, which equates to €2.645, a price at which European producers could also supply.
Skimmed milk powder is actually the only non-New Zealand product on the market. For whole milk powder, the quotation fell by 2%. This therefore exclusively concerned a Fonterra product. The quotation rose to $3.264 per tonne.
Butter prices rose to an average of $4.922 per tonne. That is €4.624 per tonne. That is slightly lower than last week's DCA quotation, but there is no longer a structurally large price gap like last autumn.
At $5.086 per tonne, or €4.778, the New Zealand Cheddar quotation is firmly priced compared to the quotations in the Netherlands and Europe and is increasing in price. However, compared to the total dairy production in New Zealand, it is a small product.