Slight bounce in global dairy price index
Global dairy prices had a slight increase at a fortnightly auction held today which comes on the back of prices rising for the first time in six months recently.
The Global Dairy Trade event (GDT) concluded with the GDT price index up 1.7pc.
Products such as butter were up 4.9pc, while skim milk powder also saw an increase of 3.5pc. Meanwhile cheddar rose by 2.2pc, lactose 1.6pc and whole milk powder was up 0.3pc.
GDT Events, which runs the auction, is owned by New Zealand’s Fonterra Co-operative Group but operates independently from the dairy giant.
The New Zealand milk co-operative, which is owned by about 10,500 farmers, controls nearly a third of world dairy trade.
This rise comes following Global dairy prices rising for the first time in six months at the fortnightly auction held early on December 5 as lower volumes of key products were offered at the sale.
However, analysts suggest that the price rally could prove to be temporary as New Zealand dairy supply ramped up and good weather conditions were expected to support production over the coming summer months.