Dairy product prices continue climb

Dairy product prices rose at the Global Dairy Trade auction, increasing for the fifth consecutive time, amid solid demand for fat products.

The GDT price index gained 3.2% from the previous auction two weeks ago to $US3313. Some 21,236 tonnes of product was sold, down from 22,633 tonnes at the previous auction.

Whole milk powder rose 1.3% to $US3312 a tonne.

Butter jumped 11.2 percent to $US5479 a tonne, while anhydrous milk fat rallied 8.2% to $US6631 a tonne.

"The milk-fat products were the star performers," AgriHQ dairy analyst Susan Kilsby said in a note. "Butter and anhydrous milk fat prices have generally been trending up all season and show no signs of slowing down."

"Strong demand for milk fat is attributed to many consumers in developed nations eating more natural foods rather than artificial or processed foods," according to Kilsby.

Butter milk powder climbed 7% to $US1980 a tonne.

"The world remains very short of milk fat products and New Zealand is the largest supplier of globally traded butter and anhydrous milk fat," said Kilsby. "As we head towards the end of our milk production season the volume of product that is available for sale falls away which is supportive of prices."

Lactose added 2% to $US967 a tonne, skim milk powder gained 1% to $US1998 a tonne, while cheddar rose 0.6% to $US3726 a tonne.

Meanwhile, rennet casein fell 3.7% to $US6259 a tonne.

There were 103 winning bidders out of 164 participating at the 19-round auction. The number of qualified bidders rose to 553, up from 548 at the previous auction.

- BusinessDesk

Add a Comment




Our journalists are your neighbours

We are the South's eyes and ears in crucial council meetings, at court hearings, on the sidelines of sporting events and on the frontline of breaking news.

As our region faces uncharted waters in the wake of a global pandemic, Otago Daily Times continues to bring you local stories that matter.

We employ local journalists and photographers to tell your stories, as other outlets cut local coverage in favour of stories told out of Auckland, Wellington and Christchurch.

You can help us continue to bring you local news you can trust by becoming a supporter.

Become a Supporter