increase font size
Westpac NZ chief economist Kelly Eckhold.
Following the latest Global Dairy Trade (GDT) auction overnight, dairy prices are now sitting at their highest since June.
The GDT price index rose 2.3% compared to the previous auction. Whole milk powder (WMP) price was up 2.9% to US$3207/MT. Butter was up 9.9% and cheddar 6.9%.
Kelly Eckhold Westpac’s chief economist in NZ says the WMP price result was in line with their expectations.
“The futures market had pointed to a WMP price rise of around 3% ahead of the auction, and we had also pencilled in a 2.3% rise last week,” says Eckhold.
Prices have now lifted by around 21% since this year’s low in August. Overall prices are now down just 3% on a year ago, 7% below their 5-year average levels and broadly in line with the 10-year average.
Following the lift in dairy prices, Westpac has lifted its forecast milk price for the season to $7.50/kgMS, bringing it in line with Fonterra’s forecast mid-point.
Eckhold says that expectations of reduced production data in NZ and offshore may still be supporting prices.
On the demand side, last night’s auction saw improved demand from China and solid support from Southeast Asian buyers, he noted.
“We remain cautious on prospects for the Chinese economy and associated Chinese dairy demand - recent data confirms ongoing deflation in consumer and producer prices in China.
“Previously, we had seen some upside risks for the milk price outlook given the stronger run of auction outcomes since August.”
Global Dairy Trade (GDT) and Arla Foods have announced that Arla will begin offering European-sourced skim milk powder (SMP) on GDT Pulse from May 2025 as part of an extension to the GDT Pulse pilot.
Horticultural prices are set to remain elevated this year, reflecting the balance between demand in key export markets and an increase in supply.
A significant rise in Global Dairy Trade (GDT) auction last week has prompted one bank to lift its forecast milk price for the season to above Fonterra's mid-point.
Whole milk powder prices on Global Dairy Trade (GDT) remains above long run averages and a $10/kgMS milk price for the season remains on the card, says ASB senior economist Chris Tennent-Brown.
The first Global Dairy Trade (GDT) auction drew mixed results, with drop in powder prices and lift in butter and cheeses.
A further ten commercial beef farmers have been selected to take part in the Informing New Zealand Beef (INZB) programme to help drive the uptake of genetics in the industry.
This morning, NZ Young Farmers (NZYF) has announced that Cheyne Gillooly will take over as its chief executive in June.
The message for the 2025 World Bee Day is a call to action for sustainable practices that support bees, improve food security, and protect biosecurity in the face of mounting climate pressures.
Consumers around the world are willing to pay more for products containing dairy and this is driving demand for butter and cream, says Fonterra.
Deputy Prime Minister Winston Peters often describes NZ as a small and isolated nation situated 'just north of the penguins' but says in terms of global affairs, NZ and other small nations should be judged on the quality of their arguments and not the size of their military.
Use of agricultural drones by contractors in New Zealand is soaring.
OPINION: Last week's announcement of Prime Minister’s new Science and Technology Advisory Council hasn’t gone down too well in the…
OPINION: At its recent annual general meeting, Federated Farmers’ Auckland province called for New Zealand to withdraw from the Paris…
