global dairy prices on fire dairynews7x7

The previous price record for global dairy products was set in April 2013. 

The average price at the fortnightly global dairy auction rose 5.1 percent to US$5065 a tonne, after rising 4.2 percent in the previous auction.

The Global Dairy Trade price index hit 1593, breaking the previous record of 1573 in April 2013.

The price of wholemilk powder, which strongly influences the payouts for local farmers, was up 5.7 percent to US$4757 a tonne.

Prices for other products sold were also up.

Butter was up 5.9 percent to US$7086 a tonne, skim milk powder was up 4.7 percent to $4481 a tonne and cheddar was up 10.9 percent to $6394 a tonne.

Last 6 months Price Index movements

NZX dairy insights manager Stuart Davison said the result was surprising, even though he expected a good jump in prices.

“To back up three events of 4 percent plus GDT price index gains with a 5.1 percent price index gain is impressive.

“There is little doubt in my mind that the buy side of the market is now correctly pricing in the lack of milk supply, made very obvious by the multitude of market data points over the last two weeks,” he said.

Davison said there was a strong showing again from all Asian buyers reinforcing the idea that the market remained supported and demand was strong.

African buyers were also “extremely” active, he said.

“As with each of the last three auctions, this magnitude of a GDT price gain will send everyone back to their milk price calculators, and will no doubt see some prices added to this season’s forecast.”

In the past month dairy companies have raised their forecast payout to farmers for the current season to record highs between $9.20 and $9.90 a kilo of milk solids.

Source : RNZ New Zealand March 2nd 2022

Subscribe for get daily dairy news

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.