Middle East demand cushions global dairy price drop at latest GDT auction
The upheaval in the Middle East may have eased the fall in global dairy prices last week.
Dairy prices overall were up slightly in last night’s Global Dairy Trade auction.
However, there were mixed results across products: whole milk powder prices rose by 2.1%, while skim milk powder prices dipped 0.8%.
Butter prices rose by 4.5%, but anhydrous milk fat was up just 0.5%. Buttermilk powder, which wasn’t offered at the previous auction, was down sharply.
Westpac senior economist Michael Gordon says the auction results were surprisingly positive, against the backdrop of a severely weakened global economy as many parts of the world have locked themselves down to slow the spread of COVID-19.
“It was, however, in keeping with the calmer tone in world financial markets since the last auction on 18 March,” he says.
Key results:
AMF index up 0.4%, average price US$4,345/MT
Butter index up 4.5%, average price US$4,263/MT
BMP index down 11.9%, average price US$2,446/MT
Ched index up 0.2%, average price US$4,395/MT
LAC index up 4.4%, average price US$959/MT
RenCas index down 2.6%, average price US$9,717/MT
SMP index down 0.8%, average price US$2,514/MT
SWP index not available, average price not available
WMP index up 2.1%, average price US$2,820/MT
Questions are being raised about just how good the state of the dairy industry is - especially given that the average farmgate payout for the coming season is set to exceed $10/kgMS.
A leading financial and banking advisor says he doubts if most dairy farmers fully understand the dynamics of banking.
Dairy farmers are shoring up their balance sheets, with almost $1.7 billion of debt repaid in the six months to March 2025.
Virtual fencing company Halter is going global but for founder Craig Piggott, New Zealand farmers will always remain their main partners.
A former Fonterra executive is the new chair of the Dairy Companies Association of New Zealand (DCANZ).
New Federated Farmers national dairy chair Karl Dean is looking forward to tackling the issues facing the sector.
OPINION: A last-minute compromise ensured that the election of the new Federated Farmers national dairy chair wasn't a repeat of…
OPINION: Just as it's healthy for cockies to get out of the shed and off the farm occasionally to get…