Monday, 23 March 2020 12:44

COVID-19: Dairy prices fall again

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 fell for the fourth consecutive time at the Global Dairy Trade auction last week.

The overnight Global Dairy Trade (GDT) auction on Wednesday 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. 

She says the 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

Sorry, not sorry

OPINION: Did former PM Jacinda Ardern get fawning reviews for her book?

Every exhibitor with something valuable to offer for farmers

OPINION: Welcome to the second annual NZ Dairy Expo at Matamata – an event created to bring together the best of the New Zealand dairy industry in a focused, grassroots environment where dairy farmers and rural professionals can meet, talk, compare products, and make smart decisions for their farms.

$10.25/kgMS milk price now in play

A significant rise in Global Dairy Trade (GDT) auction last week has prompted one bank to lift its forecast milk price for the season to above Fonterra's mid-point.

Featured

Farmstrong marks 10 years of rural support

Nationwide rural wellbeing programme, Farmstrong recently celebrated its tenth birthday at Fieldays with an event attended by ambassador Sam Whitelock, Farmers Mutual Group (FMG), Farmstrong partners, and government Ministers.

National

Machinery & Products

Farming smarter with technology

The National Fieldays is an annual fixture in the farming calendar: it draws in thousands of farmers, contractors, and industry…

» Latest Print Issues Online

Milking It

110,000 visitors!

OPINION: It's official, Fieldays 2025 clocked 110,000 visitors over the four days.

Sticky situation

OPINION: The Federated Farmers rural advocacy hub at Fieldays has been touted as a great success.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter