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Tuesday 12 December 2017

Fourth successive rise at the Global Dairy Trade auction

Figures from Fonterra show its milk collection across New Zealand for the five months to October 31 reached 501m kgMS, 5pc lower than the same period last season. Photo: Depositphotos
Figures from Fonterra show its milk collection across New Zealand for the five months to October 31 reached 501m kgMS, 5pc lower than the same period last season. Photo: Depositphotos
Ciaran Moran

Ciaran Moran

This week’s Global Dairy Trade auction concluded with the prices up 3.5% the fourth successive positive auction.

Key products whole Milk Powder and Skimmed Milk Powder both recorded increases of 4.9% and 1.4% respectively.

It comes as milk production in New Zealand, which was already running significantly behind that of 2015, took a further hit in October.

Figures from Fonterra show its milk collection across New Zealand for the five months to October 31 reached 501m kgMS, 5pc lower than the same period last season.

Key Results

  • AMF index up 2.9%, average price US$5,500/MT
  • Butter index up 1.7%, average price US$4,262/MT
  • BMP index down 2.6%, average price US$2,408/MT
  • Ched index up 2.2%, average price US$3,752/MT
  • LAC index up 10.6%, average price US$873/MT
  • RenCas index up 2.3%, average price US$6,201/MT
  • SMP index up 1.4%, average price US$2,570/MT
  • WMP index up 4.9%, average price US$3,593/MT

The world’s largest milk processor says its New Zealand milk collection continues to be impacted by unfavourable weather conditions across the North and South Islands and in October reached 204 million kgMS, 8pc  behind the same month last season.

Daily collections peaked on October 19 at 80m litres, down on the previous two seasons.

Fonterra says production levels are not expected to recover and lower volumes will flow into the balance of the season.

Also Read


Demand from China in the first nine months of this year for whole milk powder has improved significantly and China has imported almost 20pc more whole milk powder than it did in all of 2015.

And, this demand, may continue, with one recent outlook report saying that Chinese demand for dairy products will jump by as much as 40pc by 2020 and almost 70pc by 2015.

In Europe, the recent upturn in markets has been marked by the decision of the EU to offer skimmed milk powder in intervention for tender.

While the quantities of SMP offered into public intervention have slowed considerably in recent months, there is now in excess of 350,000t of SMP in public ownership following the collapse of dairy prices since 2015.

This move by the Commission would see it offload approximately 6pc of the total amount in storage.

Online Editors





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