Global Dairy Trade prices lift a 'touch' but whole milk prices down
The latest Global Dairy Trade auctions results saw overall prices lift a touch, but whole milk prices were back.
Nathan Penny, a Rural Economist with ASB bank in New Zealand said the impact of global demand was beginning to have an impact on prices at the Global Dairy Trade (GDT).
"...this season, we anticipate that demand is going to play a much larger role in determining prices. In fact, that is already the case."
Prices at the GDT were up 0.6pc this week, with butter up 3.3pc, while cheddar was up 14.5pc and skim milk powder was up 7.9pc. However, whole milk powder was down 2.9pc.
Penny went on to say that the drop in whole milk powder prices was expected and that butter prices set a fresh auction record high.
He put the surge in global demand for milk fats down to an acknowledgement by the scientific community that fats are no longer as bad for your health as once feared.
Five out of the seven products monitored by ASB were up, he reported.
The whole milk price (WMP) fall, he said, can be put down to better than expected New Zealand production.