Wednesday, 16 August 2023 08:14

Dairy prices crash

Written by  Sudesh Kissun
The Global Dairy Trade (GDT) auction overnight saw the price index slump 7.4%. The Global Dairy Trade (GDT) auction overnight saw the price index slump 7.4%.

Global dairy prices plunged overnight putting further pressure on a depressed farmgate milk price.

The Global Dairy Trade (GDT) auction overnight saw the price index slump 7.4%.

But of more concern to farmers will be the 10.9% drop in whole milk powder prices to US$2,548/metric tonne, the lowest in five years.

One year ago, WMP prices were around US$3,733/MT.

But subdued buying from Chinese customers has seen demand wane over the past 12 months.

A slow recovery of China’s food service sector has left Fonterra’s biggest market buying less products on GDT.

Fonterra recently slashed $1 off its forecast milk price range mid-point – from $8/kgMS to $7/kgMS. The latest GDT result means another revision may be on the cards.

GDT results

Global Dairy Trade Event 338 concluded with the GDT Price Index down 7.4%

Key Results

  • AMF index down 5.3%, average price US$4,452/MT
  • Butter index down 3.0%, average price US$4,539/MT
  • BMP index not available, average price not available
  • Ched index up 5.8%, average price US$4,127/MT
  • LAC not offered
  • SMP index down 5.2%, average price US$2,333/MT
  • WMP index down 10.9%, average price US$2,548/MT

More like this

$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.

$10 milk price still on

Whole milk powder prices on Global Dairy Trade (GDT) remains above long run averages and a $10/kgMS milk price for the season remains on the card, says ASB senior economist Chris Tennent-Brown.

Mixed results on GDT

The first Global Dairy Trade (GDT) auction drew mixed results, with drop in powder prices and lift in butter and cheeses.

Featured

National

Lame stories from a country vet

Everyone from experienced veterinarians and young professionals to the Wormwise programme and outstanding clinics have been recognised in this year’s…

Machinery & Products

Amazone extends hoe range

With many European manufacturers releasing mechanical weeding systems to counter the backlash around the use and possible banning of agrochemicals,…

Gong for NH dealers

New Holland dealers from around Australia and New Zealand came together last month for the Dealer of the Year Awards,…

A true Kiwi ingenuity

The King Cobra raingun continues to have a huge following in the New Zealand market and is also exported to…

» Latest Print Issues Online

Milking It

Greenpeace a charity?

OPINION: Should Greenpeace be stripped of their charitable status? Farmers say yes.

Synlait's back

OPINION: After years of financial turmoil, Canterbury milk processor Synlait is now back in business.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter