Tuesday, 24 September 2024 11:55

China making a comeback?

Written by  Staff Reporters
Last week’s Global Dairy Trade (GDT) auction saw an increase in Chinese demand for skim milk powder. Last week’s Global Dairy Trade (GDT) auction saw an increase in Chinese demand for skim milk powder.

Is China's appetite for dairy back on the rise?

Last week's Global Dairy Trade (GDT) auction saw an increase in Chinese demand for skim milk powder.

Westpac's Kelly Eckhold says this was interesting given weaker demand from China in hard commodities and oil.

"Chinese demand increased again - especially for skim milk powder. This is interesting given the generally weak economic data seen of late and weaker demand from China in hard commodities and oil. Westpac reduced its Chinese growth forecast for 2025 and 2026 this month to 4.5% for each year," says Eckhold.

He says conditions in the dairy sector continue to look positive.

"It remains to be seen how durable the recovery is given the uncertainties on Chinese growth and demand. However, interest rates are now falling which will further assist on-farm costs going forward," he says.

NZX dairy analyst Rosalind Crickett notes that whole milk powder (WMP) rose 1.5% to settle at US$3,448/t. Skim milk powder (SMP) also rose 2.2% to reach US$2,809/t, its highest average price on the platform in the last 12-months.

Read More

"Factoring market sentiment, the increased demand for both milk powders is not surprising - given the off-peak of milk production in the Northern Hemisphere combined with factors such as the bluetongue virus which has been increasing in prominence in both the UK and Europe."

Fonterra will announce its annual results this week and is expected to give an update on its forecast milk price for the season, currently at a mid-point of $8.50/kgMS.

More like this

NZ wine grapples with oversupply despite export gains

The large 2025 harvest will exacerbate the wine industry's "lingering" supply from recent vintages, New Zealand Winegrowers Chief Executive Philip Gregan told attendees at Grape Days events around the country in June.

Featured

Hort industry dishes out awards

Research and healthcare initiatives, leadership and dedication to the sector have been recognised in the 2025 Horticulture Industry Awards.

Manuka honey trader posts sour results

Manuka honey trader Comvita slumped to a $104 million net loss last financial year, reflecting prolonged market disruption, oversupply and pricing volatility.

Poultry industry, Govt sign landmark biosecurity deal

The Government has struck a deal with New Zealand's poultry industry, agreeing how they will jointly prepare for and respond to exotic poultry diseases, including any possible outbreak of high pathogenicity avian influenza (HPAI).

National

Machinery & Products

» Latest Print Issues Online

The Hound

Faking it

OPINION: Demand for red meat is booming, while it seems the heyday of plant-based protein is well past its 'best…

M.I.A.

OPINION: The previous government spent too much during the Covid-19 pandemic, despite warnings from officials, according to a briefing released…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter