Global dairy prices holding steady, despite increase in seasonal supply
Skim milk powder has reached a 12-month high, however, as farmers welcome a "more resilient result" than expected.
Global dairy prices have remained stable, despite a boost in seasonal supply, according to the Global Dairy Trade auction. The average price increased by nearly 0.1 percent to US$3,910 (NZ$6,639). This follows a 2.3 percent rise at the auction two weeks prior. Cristina Alvarado, head of dairy insights at New Zealand Exchange, noted that the result was more resilient than the anticipated increase in seasonal supply might suggest.
Milk powder demand remained strong, while milk fat declines were more manageable compared to the last event, she explained. With deliveries entering the seasonal stockpiling period prior to Christmas, Chinese New Year, and the start of Ramadan, buying activity remained steady, even as larger volumes were offered. The most significant finding from the auction was the continued strength in protein demand, which provided price support amid higher powder availability.
Meanwhile, fats like butter faced a 0.8 percent decline, while cheddar cheese saw the sharpest drop at 6.6 percent, marking its lowest price in five years.
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