INDEPENDENT NEWS

Dairy product prices drop as butter and milk fat slump

Published: Wed 21 Nov 2018 10:44 AM
Dairy product prices drop as butter and anhydrous milk fat slump
By Margreet Dietz
Nov. 21 (BusinessDesk) - Dairy product prices fell at the Global Dairy Trade auction, spurred by slides in butter and anhydrous milk fat that were the biggest in about two years.
The GDT price index dropped 3.5 percent from the previous auction two weeks ago. The average price was US$2,727 a tonne, compared with US$2,851 a tonne two weeks ago. Some 42,966 tonnes of product was sold, up from 42,412 tonnes two weeks ago.
Whole milk powder declined 1.8 percent to US$2,599 a tonne which, NZX dairy analyst Amy Castleton said, was “a surprisingly resilient result.”
“Whole milk price offer volumes were at their highest for the season,” Castleton said in a note, adding that New Zealand milk production figures released yesterday showed October production was up 6.5 percent on a milksolids basis.
“Most of the whole milk powder sold went to North Asia, which includes China,” Castleton said.
At the latest GDT auction, butter plunged 9.6 percent to US$3,637 a tonne, while anhydrous milk fat sank 9.4 percent to US$4,577 a tonne.
“There was significantly less volume of anhydrous milk fat sold compared with the previous event, but there was more butter sold,” according to Castleton. “There hasn’t been such a big percentage change in prices for either AMF and butter since late 2016.”
Rennet casein dropped 4.5 percent to US$5,067 a tonne, while skim milk powder retreated 1.6 percent to US$1,965 a tonne.
“The price of European skim milk powder increased slightly; however, Oceania product managed to maintain its premium over European product,” said Castleton.
Bucking the trend, cheddar eked out a 0.2 percent gain to US$3,252 a tonne, while lactose rose 1.1 percent to US$920 a tonne.
Butter milk powder was not offered at this event. For sweet whey powder, no product was offered or sold, or no price was published for the last event, or on both of the two previous events.
The New Zealand dollar last traded at 68.10 US cents as of 1.13pm in New York, compared with 68.39 US cents at the previous close in Wellington.
There were 143 winning bidders out of 170 participating at the 15-round auction. The number of registered bidders was 503, down from 517 at the previous auction.
(BusinessDesk)
ends
BusinessDesk
Independent, Trustworthy New Zealand Business News
The Wellington-based BusinessDesk team provides a daily news feed for a serious business audience.
Contact BusinessDesk
Email:

Next in Business, Science, and Tech

UPDATE: Auckland house price deflation accelerates
By: Greater Wellington Regional Council
Pre-Budget speech to the Wellington Chamber of Commerce
By: New Zealand Government
New owners and new era for Vodafone
By: Vodafone
Froneri unlocks NZ & Pacific with acquisition of Tip Top
By: Froneri
REINZ stats: Will the OCR impact Auckland’s median price ‘Gr
By: REINZ
Toughing it out in April
By: Kiwibank
Supporting working women with pay equity: next steps
By: New Zealand Government
Removal of fees and a stronger NCEA
By: New Zealand Government
More than 1,000 homeless to be housed through Budget 2019
By: New Zealand Government
Government invests in clean energy centre
By: New Zealand Government
Wellbeing changes all talk
By: New Zealand National Party
Consortium purchase values Vodafone NZ at $3.4 billion
By: BusinessDesk
Infratil announces NZ$3.4 billion acquisition of Vodafone NZ
By: Infratil
UPDATE: Global ice cream company Froneri snaps up Tip Top
By: BusinessDesk
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media