Global dairy prices fall for fourth consecutive trading

WELLINGTON (Xinhua) – Dairy product prices continued to drop for fourth consecutive trading at the Global Dairy Trade (GDT) auction yesterday, as whole milk powder price continued to fall.

The GDT price index fell 0.4 per cent from the previous auction two weeks ago. The average price was USD3,302 per tonne and 24,711 tonnes of products were sold, 472 tonnes more than the volume traded two weeks ago.

Whole milk powder dropped USD2,969 per tonne, but its price index has not changed.

“Although the index was unchanged, this was the seventh consecutive decrease in average prices since March 2019,” NZX dairy analysts Robert Gibson and Amy Castleton said in a note.

“Total offer volumes were up leading into the event, with the softer average price likely a reflection of a lift in volumes sold and reduced buyer activity out of North Asia,” they said.

At the latest GDT auction, the price declined in all commodities except skim milk powder, which saw its price increased 3.2 per cent to USD2,430.

Buttermilk powder had the largest retreat in price, plunging 11.9 per cent to USD2,500 per tonne. Butter decreased 4.8 per cent to USD4,339 per tonne, while Rennet Casein fell 3.9 per cent to USD7,221 per tonne.

Meanwhile, cheddar slid down 1.5 per cent to USD3,756 per tonne, while anhydrous milk fat and lactose retreated 1.9 per cent and 1.1 per cent to USD5,433 and USD866 per tonne respectively. Price of sweet whey powder is not available at the latest auction.