When will global milk production hit a tipping point?
With global milk prices falling, the question is when will key exporting countries reach a tipping point where production starts to dip.
At the latest GDT auction, butter prices rose 3.4% over the previous auction to US$6004/tonne.
Overall the GDT auction saw little price movement- the price index was up just 0.2%.
Whole milk powder prices, a major indicator of Fonterra’s milk payout to farmers was up 0.3% to US$3114/tonne. Skim milk powder was down 3.2%.
Key results
AMF index down 0.2%, average price US$6,577/MT
Butter index up 3.4%, average price US$6,004/MT
BMP not offered
Ched index up 1.6%, average price US$4,112/MT
LAC index down 1.8%, average price US$825/MT
RenCas index up 2.4%, average price US$6,358/MT
SMP index down 3.2%, average price US$2,024/MT
WMP index up 0.3%, average price US$3,114/MT
