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

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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.

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