Milk Powder Prices Prop Up Farmgate Milk Price
Milk powder prices are keeping farmgate prices up, helping processors offset the dip in milk fat prices.
New Zealand's key export product whole milk powder saw a decrease of 1.8% to US$2,386/tonne.
While the average price for skim milk powder, fell 7.5% to US$2,048.
However, butter milk powder and rennet casein had the greatest decreases; butter milk powder dropped 14% to US$1,748, rennet casein was down 11% to US$6,094.
Anhydrous milk fat and butter also fell with drops of 6.3% to US$3,505 and 0.8% to US$3,005 respectively.
Cheddar was the only product to see gains in the auction, with an average rise of 9.1% to US$3,012.
This will be bad news for dairy farmers still reeling after Fonterra lowered its farmgate milk price forecast last week from $4.70 kgMS from $4.50.
Key Prices
AMF index down 6.3%, average price US$3,505/MT
Butter index down 0.8%, average price US$3,005/MT
BMP index down 14.0%, average price US$1,748/MT
Ched index up 9.1%, average price US$3,012/MT
LAC index not available, average price not available
RenCas index down 11.0%, average price US$6,094/MT
SMP index down 7.5%, average price US$2,048/MT
SWP not offered
WMP index down 1.8%, average price US$2,386/MT
