Wednesday, 18 November 2015 08:48

Dairy prices drop again

Written by Rural News Group

font size decrease font size increase font size
Print
Email

Milk powder prices tumbled.

It's been another bad morning for the dairy industry.

This morning's GlobalDairyTrade auction saw the GDT price index down 7.9%, its third consecutive drop.

Worryingly, milk powder prices tumbled; whole milk powder was down 11% to US$2148/tone and skim milk powder down 8% to US$1851/tonne.

Fonterra says whole milk powder prices should stay around the US$3000/tonne to mark to justify the current forecast payout for the season; the co-op is forecasting a milk payout of $4.60/kgMS.

This week it increased its forecast earnings per share range for the current financial year to 45-55 cents, a lift of 5c.

Fonterra chairman John Wilson told journalists that he expects global dairy prices to firm in the first half of next year.

Key Results of this morning's GDT event;

AMF index down 5.9%, average price US$3,430/MT
Butter index up 5.6%, average price US$2,709/MT
BMP index down 1.0%, average price US$1,825/MT
Ched index down 5.0%, average price US$2,874/MT
LAC index down 2.0%, average price US$503/MT
RenCas index down 4.4%, average price US$5,250/MT
SMP index down 8.1%, average price US$1,851/MT
WMP index down 11.0%, average price US$2,148/MT

Featured

Call for action ahead of International Women's Day

This International Women's Day, there are calls to address a reported gender disparity gap between men women New Zealand's horticulture industry leadership.

Accident triggers traffic alert in barns, sheds

WorkSafe New Zealand is calling on farmers to consider how vehicles move inside their barns and sheds, following a sentencing for a death at one of South Canterbury’s biggest agribusinesses.

Plantain 'still a winner' in nitrogen loss battle

Now is not the time to stop incorporating plantain into dairy pasture systems to reduce nitrogen (N) loss, says Agricom Australasia brand manager Mark Brown.

People expos set to return

Building on the success of last year's events, the opportunity to attend People Expos is back for 2025, offering farmers the chance to be inspired and gain more tips and insights for their toolkits to support their people on farm.

SustaiN lands NZ registration

Ballance Agri-Nutrients fertiliser SustaiN – which contains a urease inhibitor that reduces the amount of ammonia released to the air – has now been registered by the Ministry of Primary Industries (MPI). It is the first fertiliser in New Zealand to achieve this status.

Precision N application test costs 'outweigh returns'

Precision application of nitrogen can improve yields, but the costs of testing currently outweigh improved returns, according to new research from Plant and Food Research, MPI and Ravensdown.