Prices have been falling since hitting a record high in March, and are at their lowest level since February 2021. [Photo: RNZ]
Global dairy prices have fallen for the fifth consecutive time in the latest global dairy auction.
The average price at the fortnightly sale fell 2.9 percent to US$3768 a tonne, after falling 5 percent in the previous auction.
Prices have been falling since hitting a record high in March, and are at their lowest level since February 2021.
The wholemilk powder price, which strongly influences payouts for farmers, fell 3.5 percent at US$3417 a tonne.
Butter increased 0.2 percent in price, skim milk powder also rose and cheddar recorded the biggest increase of 4.2 percent.
NZX dairy insights manager Stuart Davison said the fall in average dairy prices was not a surprise, but increases for skim milk powder, butter and cheddar were.
“This price decline isn’t at the same rate as the previous handful of auctions, with decent demand arriving at the beginning of the auction and sticking around for three rounds, which hasn’t happened recently; almost a glimmer of demand returning for whole milk powder,” Davison said.
“For me, this event is relatively positive, it seems like a very different auction to that of the last four events, and definitely different to the last 10 auctions. As the supply of commodities on the Global Dairy Trade platform seasonally increase, this will be an interesting trend to watch; has the market finally scratched some direction from somewhere?”
North Asian buyers were in the driver’s seat of wholemilk powder bidding and purchases, he said.
African buyers were notably absent, buying “next to nothing” at the event.”