News Milk
Lowest volume since 2013 on Global Dairy Trade
During the second Global Dairy Trade in May, in addition to the lower prices, the trading volume is also striking. This is the lowest in more than ten years.
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At 15.195 tonnes, the traded volume is at its lowest level since spring 2013. The traded volume is always lowest in spring and fluctuates with milk production in New Zealand. This year, the dip is lower than in other years; compared to 2024, it is almost 2.500 tonnes less in dairy products. Apparently, the demand for dairy is not that great.
This is also evident from the prices that are moving down across the board (with the exception of mozzarella). It can also be seen as a downward correction on the auction two weeks ago that was surprisingly positive.
Cheddar Down
The biggest drop is due to cheddar, which drops by almost 10% to $5.000 per tonne. This wipes out the considerable gain from the previous drop. This also applies to lactose, which had also risen during the previous auction, but now drops by no less than 13,2% to 1.398 per tonne. The other drops are more moderate.
Butter and skimmed milk powder
The lower butter price should come as no surprise, as the fat market is somewhat less wild. European product was traded above $8.000 tonnes and is therefore more expensive than New Zealand product. The tables are turned for skimmed milk powder. Product from Belgium's Solarec went for $2.760, while product from Fonterra fetched almost $3.000 per tonne.