The GDT index dropped by 1.6% at this week’s auction in New Zealand to leave the average dairy product price at $2,458/t – the same as the last auction price.
There were 166 participating bidders in the auction, with 25,671t of quantity sold. The average price for product was $2,458/t. The previous GDT index on 15 December 2015 had lifted by 1.9%, but it had the same average product price of $2,458/t.
The biggest drop in prices for individual products in Tuesday’s auction was for New Zealand’s trademark product whole milk powder (WMP), which dropped by 4.4% to $2,210/t.
At the last auction, the average price of WMP increased by almost 2% to just over $2,300/t.
In terms of increases, lactose increased the most by 11.4%, followed much more importantly by butter, which rose by 6.7%. Cheddar prices also rose. At the last auction, butter led the individual product gains.
Just prior to Christmas, there was a slight recovery in EU skim milk powder (SMP) and butter prices.
Around the same time, there was a deep fall in Dutch spot milk prices, which normally coincides with the Christmas holidays as nobody has any interest in buying more product from spot markets over the holiday period.
The latest world milk prices show New Zealand price at 23c/litre, the US still high at 35c/litre and EU raw milk price in between at 30.6c/litre.
As we reported last week, surprisingly, the continued autumn milk supply increase has prompted the large Dutch processor Friesland Campina to offer a bonus if suppliers reduce or at least hold the same delivery they delivered in mid-December for the first six weeks of 2016.
As supply increases, Friesland has short-term processing capacity issues.
Read more
Read full Milk Quality Focus here
The GDT index dropped by 1.6% at this week’s auction in New Zealand to leave the average dairy product price at $2,458/t – the same as the last auction price.
There were 166 participating bidders in the auction, with 25,671t of quantity sold. The average price for product was $2,458/t. The previous GDT index on 15 December 2015 had lifted by 1.9%, but it had the same average product price of $2,458/t.
The biggest drop in prices for individual products in Tuesday’s auction was for New Zealand’s trademark product whole milk powder (WMP), which dropped by 4.4% to $2,210/t.
At the last auction, the average price of WMP increased by almost 2% to just over $2,300/t.
In terms of increases, lactose increased the most by 11.4%, followed much more importantly by butter, which rose by 6.7%. Cheddar prices also rose. At the last auction, butter led the individual product gains.
Just prior to Christmas, there was a slight recovery in EU skim milk powder (SMP) and butter prices.
Around the same time, there was a deep fall in Dutch spot milk prices, which normally coincides with the Christmas holidays as nobody has any interest in buying more product from spot markets over the holiday period.
The latest world milk prices show New Zealand price at 23c/litre, the US still high at 35c/litre and EU raw milk price in between at 30.6c/litre.
As we reported last week, surprisingly, the continued autumn milk supply increase has prompted the large Dutch processor Friesland Campina to offer a bonus if suppliers reduce or at least hold the same delivery they delivered in mid-December for the first six weeks of 2016.
As supply increases, Friesland has short-term processing capacity issues.
Read more
Read full Milk Quality Focus here
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