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Dairy prices fall for first time in 4 months

March 5, 2024
in Business
Dairy prices fall for first time in 4 months
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Brighter Future - Dairy. Dairy farming family the Mathieson's, Ewen, Dianne and Melissa talk about the boom and bust of their industry since 2008 and how they got through some of the tougher times.

Photo: RNZ / Rebekah Parsons-King

Dairy prices have fallen for the first time in four months.

The global auction overnight saw the average price ease 2.3 percent to US$3630 a tonne.

The whole milk powder price – which influences payouts for local farmers – fell 2.8 percent to $3286 a tonne.

Other products were mixed – cheddar rose, while prices were weaker for butter and skim milk powder.

NZX dairy analyst Rosalind Crickett said it was “the largest pricing slump felt on the platform since August last year”.

She said the results were in line with expectations.

“On a regional buying front, North Asia continued their reign as top buyer of both milk powders and butter, while the Middle East took out the top buyer’s spot [for] cheddar,” Crickett said.

Skim milk powder recorded the biggest price decrease in the auction, falling 5.2 percent.

“Although it’s worth noting that the average price [for skim milk powder] still sits well and truly above those seen through December-January,” Crickett said.

Dairy company forecasts indicated a payout of around $7.80 per kilogram of milk solids in the current season.

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Copyright for syndicated content belongs to the linked Source : RNZ – https://www.rnz.co.nz/news/business/510975/dairy-prices-fall-for-first-time-in-4-months

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