When will global milk production hit a tipping point?
With global milk prices falling, the question is when will key exporting countries reach a tipping point where production starts to dip.
In May this year, the price of butter of Global Dairy Trade platform nearly touched US$8,000/MT.
However, butter prices have dropped in the last 10 consecutive GDT auctions and now sit at around US $5900/MT.
While butter prices don't impact the farmgate milk price in a big way, the downward trend should mean cheaper prices for butter on supermarker shelves.
The media were quick to blame Fonterra for the rise in prices, but don't hold your breath for credit being given for the price drop!
