Butter prices down at Fonterra auction

The overall weighted index of Fonterra's globalDairyTrade was 0.9% lower on February 1 auction as all products sold at lower prices than last month. AMF (butteroil) prices dropped by 3.5% to US $3,942 per tonne as stock are beginning to build in the US.

The return of rains to the South Island has also taken away any risk of drought this season.

WMP was also down by 0.9% to $3,533 per tonne, and SMP by 0.5% to $3,296 per tonne.

Cheddar prices fell by 1.1% to $3,640 per tonne. Rennet Casein prices were 4.3% lower at $7,715 and MPC (milk protein concentrate) prices dropped by 4.9% to $5,569.

Dairy products valued at NZ $11.334bn provided 24% of NZ's total export revenue in 2011.

The value of NZ's dairy exports doubled between 2006 and 2011. In 2011 dairy exports accounted for 41% of total goods exported from New Zealand up from 18% in 2006.

Butter quotes were €50 per tonne lower than last week at €3,430 on the Dutch Dairy Board site, while WMP and SMP prices were similar to last week at €2,830 and €2,300 respectively.

These prices would return a milk price in excess of 31 c/l to Irish farmers at 3.3% protein and 3.6% fat.