Dairy prices fall to lowest since August 2009 in GDT sale
Dairy products prices extended their slide in Fonterra's latest GlobalDairyTrade auction, reaching the lowest since August 2009.
BUSINESSDESK: Prices of dairy products extended their slide in Fonterra's latest GlobalDairyTrade auction, reaching the lowest since August 2009.
The GDT-TWI Price Index fell 2.4% compared to the last sale two weeks ago.
The average winning price dropped to $US$2843 a metric tonne.
The price of whole milk powder declined 2.2% to $US2776 a tonne and skim milk powder fell 4.6% to $US2730 a tonne.
The decline comes as Fonterra’s farmgate pricing faces political scrutiny in New Zealand, where the co-operative’s enabling legislation is getting its biggest overhaul since the world’s biggest dairy exporter was created in 2001.
Among changes are greater regulatory oversight of prices and the promotion of Fonterra’s Trading Among Farmers scheme that seeks to solidify its capital base.
Anhydrous milk fat dropped 13.6% to $US2852 a tonne in the latest auction.
Cheddar gained 3.1% to $US2940 a tonne and milk protein concentrate declined 11.7% to $US3990 a tonne.
Rennet casein fell 0.5% to $US6395 a tonne.
Lactose, which is sold by Australian dairy company Murray Goulburn, rose 3% to $US2016 a tonne.
There were 119 winning bidders over 11 rounds, out of 136 participating bidders.
The number of qualified bidders rose to 620 from 610.
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Dairy prices fall to lowest since August 2009 in GDT sale
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