Analysis Dairy
Global Dairy Trade at lowest point in 2,5 years
Prices of dairy raw materials have taken an even harder hit at the latest Global Dairy Trade auction than two weeks ago. It dashes hopes of a speedy recovery of markets.
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Two weeks ago the index fell by 2,6% to $3.361 per tonne of product, this time it fell by 4,7% to $3.227 per tonne.
Lower milk price expectations
This result has hit home hard in New Zealand. Media wonder whether this is the end of the high milk prices. It is also immediately noted that Fonterra will have to lower its milk price forecast again.
In percentage terms, the decline is also the strongest in six months, while the index is at the lowest level since November 964 with 2020 points.
In most cases, the prices of the various dairy raw materials offered simply fell even faster than last time: the butter price now fell by 3,3% compared to 3% two weeks ago, AMF (butter oil) fell by 7,2% in price , compared to last time with 3,8% and whole milk powder with 5,2%, compared to before with 1,5%.
Strange price movements
There were also less easy to follow movements. At the previous auction, the Cheddar price fell by 10,2% to $4.052 per tonne, while this time the price rose by 3,8% to $4.167 per tonne.