Dairy prices crash

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