Wednesday, 18 March 2020 08:29

Covid-19 hangs over dairy prices

Written by  Staff Reporters
Global dairy prices have slumped for the fourth consecutive time. Global dairy prices have slumped for the fourth consecutive time.

Global dairy prices have slumped for the fourth consecutive time in 2020 and coronavirus (Covid-19) is to blame.

The overnight Global Dairy Trade (GDT) auction saw the price index drop by 3.9%; whole milk powder prices dropped 4.2% to US$2797/metric tonne.

Rabobank senior dairy analyst Emma Higgins says clearly the onset of coronavirus stalled the upward trajectory in global dairy prices visible in late 2019 and the corona hangover continues as evidenced by the GDT Event held overnight. 

She says last night’s results are now the fourth decline for 2020.

“The GDT Price Index moved lower by 4% with average prices now sitting below USD 3,000/tonne (USD 2,980/tonne). This is now in line with average prices back in January last year. Buyers and sellers are still scrambling to assess the market impact as the spread of the virus moves from China to more broadly across the globe.”

Key results

AMF index up 1.0%, average price US$4,331/MT

Butter index up 0.3%, average price US$4,144/MT

BMP not offered

Ched index up 2.6%, average price US$4,398/MT

LAC index up 4.9%, average price US$914/MT

RenCas index up 1.0%, average price US$9,987/MT

SMP index down 8.1%, average price US$2,527/MT

SWP index not available, average price not available

WMP index down 4.2%, average price US$2,797/MT

More like this

Dairy prices rise

The Global Dairy Trade (GDT) auction overnight delivered its third consecutive positive result.

Milk price forecasting ‘tricky’

Rising milk production in the Americas and Europe, the COVID-19 pandemic and a strong NZ dollar are making it difficult for economists to forecast the 2020-21 milk price.



» The RNG Weather Report

» Latest Print Issues Online

Milking It

Caught out?

Was Fonterra caught napping in Australia?

Celebrity welfare

Wannabe kiwi James Cameron is back in the country, under a special visa, to continue filming his movie during the…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter