News dairy business
Butter Price Shoots Down on Lower Global Dairy Trade
The weaker sentiment in the dairy market is also clearly reflected in the Global Dairy Trade. The price of butter in particular will be hit. The only thing that does increase compared to the penultimate auction is the traded volume.
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With a loss of 3,3%, the average price drops back to $3.334 per tonne. This is the biggest drop since mid-April. The price of butter in particular, which has had to increase significantly in recent auction sessions, has fallen sharply and dropped by 10,3% to $4.842 per tonne. This confirms the weak undertone on the fat market that has also been visible in Europe in recent times.
In milk protein, the value is not much more positive, as skimmed milk powder drops by 6% to $2.525 per tonne. Cheddar is also down, down 3,1% to $4.386 per tonne. Whole milk powder is the most stable factor with a decrease of 0,4% to $3.149 per tonne. Only the traded volume rose to just under 25.000 tons.
Fonterra relies on China
The lower prices suggest that China is once again not showing up as a buyer. This is a situation that has been going on for some time. It is striking that dairy cooperative Fonterra and also co-organizer of the GDT indicated last week that Chinese dairy consumption is actually recovering from the lockdowns that were only abolished at the beginning of this year. Fonterra expects a lot of demand from China in particular in 2024, but is already seeing signs of recovery.