Dairy prices slip in Fonterra auction
Dairy prices have fallen again in Fonterra's latest fortnightly global auction.
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Dairy commodity prices fell back further at Fonterra's overnight online auction, with the global DairyTrade trade weighted index down 2.4 percent, while the average winning price dropped to US$4280 (NZ$5572) from US$4443 three weeks ago.
The decline followed an 8.2 percent tumble in the index in mid-March, but BNZ strategist Kymberly Martin said prices remained at elevated levels and were 19 percent above November last year.
Despite the recent falls, dairy prices have risen 15% this year on strong demand, particularly from Asia.
In February, Fonterra lifted the payout to farmers to between $7.90 and $8.00 a kilogramme of milk solids for the current season.Fonterra is owned by about 11,000 farmers and generates annual sales of about $17 billion.
NBR staff
Wed, 06 Apr 2011
Wed, 06 Apr 2011
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Dairy prices slip in Fonterra auction
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