Tuesday, 17 August 2021 13:55

Supply down, prices up?

Written by  Sudesh Kissun
RaboResearch dairy analyst Emma Higgins. RaboResearch dairy analyst Emma Higgins.

Raboresearch's Emma Higgins notes that this month's weak whole milk powder result was extremely interesting.

She says this was because for the second time in one month, Fonterra dropped the amount of dairy product available at coming GDT Events.

WMP volumes were scaled back by a significant 20,000 tonnes (spread across GDT auctions over the coming months). SMP was also pared back by 6,000 tonnes, while AMF offerings were lowered by 750 tonnes for GDT events over upcoming auctions.

Higgins says these changes now mean that the next few GDT Events will have the lowest volumes of WMP available for this time of the year since 2016 - at a time when historically both product on the GDT and in the milking sheds are ramping up.

Chinese buyers were still very much present at this GDT auction - but evidently wanting to pay lower prices, she notes.

"While this was the lowest absolute volume of product Chinese buyers have procured for this time of the year since 2017," Higgins says. "They still purchased two-thirds of the WMP available. SEA/Oceania buyers took home around one quarter of available WMP."

More like this

Flat dairy prices is good news

Dairy prices at last week's Global Dairy Trade auction remained largely unchanged but the news remains positive for New Zealand dairy farmers.


Tributes to a dairy champion

Fonterra chairman Peter McBride has paid tribute to dairy industry leader John Luxton, who passed away earlier this month.

Dairy tops organic exports

Dairy has been named as New Zealand’s largest organic sector with exports of $153.8 million, up 55% from 2017.

Machinery & Products

Gongs for John Deere

The tractor of the Year 2022 Awards, held at the recent EIMA show in Bologna, handed out a brace of…

Digital pre-start safety checks

According to numbers published by ACC, more than 60 farm-related injuries are reported every day, leaving much room for improvement.

JV for Bucket Test App

Irrigation NZ and global farm management company CropX have established a joint venture agreement for the Bucket Test app.

» The RNG Weather Report

» Latest Print Issues Online

Milking It

Poo-powered BMW

OPINION: Car maker BMW is partnering with a California dairy farm to turn effluent into clean energy to power its…

Not bad

OPINION: New Zealand may be a minnow on the global stage but here’s another example how our ag sector punches…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter