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.
Last night’s auction saw an average price decline of 3.6% to US$2,620, down from US$2,746 at the previous auction two weeks ago.
Skim milk powder saw the greatest drop, down 7.8% to US$2,253 a tonne, while butter fell 6.6% to US$3,026 a tonne, and whole milk powder slid 4.3% to US$2,446 a tonne.
Rennet casein also saw a small decrease of 0.6% to US$6,949 a tonne.
However, gains were made in buttermilk powder, which rose 2.1% to US$2,208 a tonne, while anhydrous milk fat was up 2.3% to US$3,744 a tonne, and cheddar increased 2.7% to US$2,888 a tonne.
Last night’s result was the lowest level since the last auction of 2014. Some 25,596 tonnes of product was sold, up from the 23,162 sold at April 1 auction two weeks ago.
