Glut in global milk supply keeping prices down
The final Global Dairy Trade (GDT) auction has delivered bad news for dairy farmers.
The Global Dairy Trade price index was up marginally in the auction overnight with a gain of 0.9%.
The result was the sixth consecutive gain – but nowhere near the hefty 6.7% increase at the last auction two weeks ago.
Key product whole milk powder (WMP) was up just 0.3% to an average price of US$3022/MT.
There were 120 winning bidders from a field of 169 and 25,324MT of product was sold at an average price of US$3271/MT.
Key results
AMF index up 0.7%, average price US$5,620/MT
Butter index up 1.2%, average price US$4,495/MT
BMP not offered
Ched index up 2.9%, average price US$3,667/MT
LAC index down 2.9%, average price US$998/MT
RenCas index up 2.7%, average price US$5,740/MT
SMP index up 2.8%, average price US$2,580/MT
SWP index not available, average price not available
WMP index up 0.3%, average price US$3,022/MT
Farmer confidence has taken a slight dip according to the final Rabobank rural confidence survey for the year.
Former Agriculture Minister and Otaki farmer Nathan Guy has been appointed New Zealand’s Special Agricultural Trade Envoy (SATE).
Alliance Group has commissioned a new heat pump system at its Mataura processing plant in Southland.
Fonterra has slashed another 50c off its milk price forecast as global milk flows shows no sign of easing.
Meat processors are hopeful that the additional 15% tariff on lamb exports to the US will also come off.
Fears of a serious early drought in Hawke’s Bay have been allayed – for the moment at least.