increase font size
Rabobank’s dairy analyst Emma Higgins.
The Global Dairy Trade (GDT) auction continues to deliver good news for dairy farmers.
At the overnight auction, the GDT Price Index rose 1.9%; whole milk powder (WMP), butter and cheese prices were the big drivers for the 8th price rise in a row.
Rabobank’s dairy analyst Emma Higgins notes that butter pushed past the US$5000 mark, with a 9.3% lift to US$5,089/tonne – a price not seen since middle of last year.
WMP nudged up a healthy 4% to US$3,317/tonnes.
Underpinning price increases lies the risk to milk collections over the tail of the season, she says.
“Fonterra have pulled back their forecast milk collections for the 2018/19 season for the second time in recent weeks as dry conditions take hold – particularly in pockets of the North.
“Buyers will be looking to procure volumes before production trails off and the seasonal hiatus takes place until next season.
“The risk for apathetic buyers waiting in the wings is that the season could end sharply should no meaningful rain emerge over the final weeks of March for hot spots in need.”
Skim milk powder was down 2.4% to US$2,405/tonne.
“We are seeing a recalibration of SMP prices after almost reaching US$2,600/tonnes in February 2019 in the aftermath of the EU SMP intervention stocks selling down.
“The market is now digesting EU intervention stocks: sold on paper and now moving physically through the supply chain,” she says.
Favourable weather in Europe has been reported for the first few weeks of spring and weekly milk collections continue to improve in key production regions.
Higgins says buyer focus will remain on New Zealand over the next couple of GDT Events, before attention turns sharply to the Northern Hemisphere spring peak.
Key results
AMF index down 3.1%, average price US$5,662/MT
Butter index up 9.3%, average price US$5,089/MT
BMP not offered
Ched index up 3.9%, average price US$4,036/MT
LAC index down 1.0%, average price US$1,000/MT
RenCas index up 9.7%, average price US$6,190/MT
SMP index down 2.4%, average price US$2,405/MT
SWP index not available, average price not available
WMP index up 4.0%, average price US$3,317/MT
A new Indonesian school milk programme is expected to significantly increase the country's total dairy consumption, creating opportunities for New Zealand and other global dairy players.
Twenty rural community hubs across New Zealand will receive $5,000 to upgrade their facilities having been selected as the winners of Rabobank's Community Hub Competition.
Global Dairy Trade (GDT) and Arla Foods have announced that Arla will begin offering European-sourced skim milk powder (SMP) on GDT Pulse from May 2025 as part of an extension to the GDT Pulse pilot.
New Zealand is so far escaping the unpredictable vagaries of President Donald Trump's trade policies by the skin of its teeth.
The cost of producing milk in New Zealand continues to compare favourably with other exporting regions despite a lift in production costs over the past five years.
The Good Carbon Farm has partnered with Tolaga Bay Heritage Charitable Trust to deliver its first project in Tairāwhiti Gisborne.
Education union NZEI Te Riu Roa says that while educators will support the Government’s investment in learning support, they’re likely to be disappointed that it has been paid for by defunding expert teachers.
The Government says it is sharpening its focus and support for the food and fibre industry in Budget 2025.
A European Union regulation ensuring that the products its citizens consume do not contribute to deforestation or forest degradation worldwide threatens $200m of New Zealand beef and leather exports.
A long-acting, controlled- release capsule designed to protect ewes from internal parasites during the lambing period is back on the market following a comprehensive reassessment.
Healthcare appears to be the big winner in this year's budget as agriculture and environment miss out.
OPINION: Last week's announcement of Prime Minister’s new Science and Technology Advisory Council hasn’t gone down too well in the…
OPINION: At its recent annual general meeting, Federated Farmers’ Auckland province called for New Zealand to withdraw from the Paris…
