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

Featured

Massey Research Field Day attracts huge interest

More than 200 people turned out on Thursday, November 21 to see what progress has been made on one of NZ's biggest and most comprehensive agriculture research programmes on regenerative agriculture.

Expo set to wow again

Stellar speakers, top-notch trade sites, innovation, technology and connections are all on offer at the 2025 East Coast Farming Expo being once again hosted in Wairoa in February.

A year of global challenges

As a guest of the Italian Trade Association, Rural News Group Machinery Editor Mark Daniel took the opportunity to make an early November dash to Bologna to the 46th EIMA exhibition.

National

OSPRI's costly software upgrade

Animal disease management agency OSPRI has announced sweeping governance changes as it seeks to recover from the expensive failure of…

Machinery & Products

BA Pumps expand

Cambridge based BA Pumps & Sprayers, specialists in New Zealand-made spraying equipment, has acquired Tokoroa Engineering’s product range, including the…

Entries open for innovation award

Fieldays and its renowned Innovation Awards are celebrating their 57th year, marking a longstanding tradition in the agricultural calendar, with…

» Latest Print Issues Online

Milking It

Chinese strategy

OPINION: Fonterra may have sold its dairy farms in China but the appetite for collaboration with the country remains strong.

Not fair

OPINION: The Listener's latest piece on winter grazing among Southland dairy farmers leaves much to be desired.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter