March 20, 2014

Global dairy prices drop on excess supply

Due to increased production in New Zealand and Europe creating more supply than demand, global dairy prices have fallen sharply.

Following a 4% drop earlier in the month, Global Dairy Trade, a bi-monthly auction of dairy, fell by 5.2% Tuesday (Mar 18) night.

John Droppert, industry analyst from Dairy Australia, said the fall won't affect this season's prices for farmers, but it could temper next season's opening milk price, which starts in July.

Individual product prices fell across the board.

Butter fell 4.4%, cheddar was down 4.1%, whole milk powder fell 5.8% and skim milk powder dropped 1.7%.