November 22, 2019

Global dairy prices go up for fifth consecutive time

The Global Dairy Trade (GDT) Price Index rose 1.7% with a US$3,491 per tonne average selling price at the GDT fortnight auction amid constrained global supplies, reported Reuters.

Robert Gibson, analyst at the New Zealand Exchange said the consecutive price increase comes from milk powders, with slower dairy production reported around the world. It is a seasonally low dairy production point at the northern hemisphere this point of the year, while supplies have dropped at the southern hemisphere.

He added that New Zealand has eased supplies compared to the same time in 2018.

The previous sale two weeks ago saw a 3.7% increase.

Whole milk powder was the most traded item at the auction. Prices are at its highest level since 2016, with a 2.2% at the recent auction. There was also a 3.3% price increase for skim milk powder.

According to the GDT website, 37,968 tonnes were sold at the most recent auction, 1.8% lower compared to the previous auction.

GDT events is owned by Fonterra Co-operative Group New Zealand. However, GDT is an independent operation.

A third of the world dairy trade is controlled by the 10,500 New Zealand farmers who own Fonterra Co-operative Group.

GDT auctions are conducted fortnightly, with its next auction scheduled for December 3, 2019. Its trading manager is CRA International, a US-listed company.

-      Reuters