Tuesday, 17 August 2021 13:55

Supply down, prices up?

Written by  Sudesh Kissun
RaboResearch dairy analyst Emma Higgins. RaboResearch dairy analyst Emma Higgins.

Raboresearch's Emma Higgins notes that this month's weak whole milk powder result was extremely interesting.

She says this was because for the second time in one month, Fonterra dropped the amount of dairy product available at coming GDT Events.

WMP volumes were scaled back by a significant 20,000 tonnes (spread across GDT auctions over the coming months). SMP was also pared back by 6,000 tonnes, while AMF offerings were lowered by 750 tonnes for GDT events over upcoming auctions.

Higgins says these changes now mean that the next few GDT Events will have the lowest volumes of WMP available for this time of the year since 2016 - at a time when historically both product on the GDT and in the milking sheds are ramping up.

Chinese buyers were still very much present at this GDT auction - but evidently wanting to pay lower prices, she notes.

"While this was the lowest absolute volume of product Chinese buyers have procured for this time of the year since 2017," Higgins says. "They still purchased two-thirds of the WMP available. SEA/Oceania buyers took home around one quarter of available WMP."

More like this

Dairy demand on the rise

There is increasing evidence that dairy demand is on the upswing, according to Rabobank senior agricultural analyst Emma Higgins.

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.

Boost for hort exports

The horticulture sector is a big winner from recent free trade deals sealed with the Gulf states, says Associate Agriculture Minister Nicola Grigg.

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