Strong production, tested demand send milk prices crashing
Strong global milk production and rebalancing of demand among key buyers has delivered one of the biggest drops in whole milk powder prices in recent years.
Last week's whopping rise in dairy prices is encouraging, but it’s too early to pop the champagne, say analysts.
The NZ dairy season is into its second month and last week’s Global Dairy Trade (GDT) auction was the third for the 2020-21 season. There are 22 more GDT auctions planned before the season ends May 31 next year.
RaboResearch analyst Michal Harvey says the key selling season for New Zealand is still a few weeks away but Fonterra (and other exporters with GDT plus price offerings) can lock away some product at decent prices.
“But we would still be cautious about calling a sustained lift in prices. The underlying fundamentals will mean global markets will need to price in high stocks on the buy and sell side, lower dairy demand in emerging economies as incomes are negatively impacted, and growing milk pools in all key export regions.”
The GDT price index rose 8.3% - the single biggest lift in the index price since late 2016. Most notably, the whole milk powder index price jumped 14% to US$3208/tonne.
Harvey says this takes the WMP index price back to a similar level to that of the start of the year, and remarkably 5% higher than at the same time last year.
According to the most recent Rabobank Rural Confidence Survey, farmer confidence has inched higher, reaching its second highest reading in the last decade.
From 1 October, new livestock movement restrictions will be introduced in parts of Central Otago dealing with infected possums spreading bovine TB to livestock.
Phoebe Scherer, a technical manager from the Bay of Plenty, has won the 2025 Young Grower of the Year national title.
The Fencing Contractors Association of New Zealand (FCANZ) celebrated the best of the best at the 2025 Fencing Industry Awards, providing the opportunity to honour both rising talent and industry stalwarts.
Award-winning boutique cheese company, Cranky Goat Ltd has gone into voluntary liquidation.
As an independent review of the National Pest Management Plan for TB finds the goal of complete eradication by 2055 is still valide, feedback is being sought on how to finish the job.
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