Dairy prices make soft start to 2017Staff Writer | January 5, 2017
International milk prices posted their largest fall in three months in the year's first auction held early Wednesday.
Food trade A sharp drop in whole milk powder prices
The Global Dairy Price index fell 3.9 percent with an average selling price of $3,463 per tonne. The index fell 0.5 percent at the previous sale.
It was the first time in more than six months that prices fell at consecutive fortnightly auctions and it tempers a rise of 50 percent during 2016, as prices rebounded after two years of falls.
The price index for whole milk powder dropped 7.7 percent, against futures market expectation for flat trade, following an announcement a week ago from dairy giant Fonterra that it had lifted production volumes by 5 percent.
A total of 22,396 tonnes was sold at the latest auction, an increase of 0.3 percent from the previous one, Fonterra said on its website.
Milk fat and lactose prices also fell, while skim milk powder prices rose 2.3 percent, butter prices rose 0.5 percent and cheese prices rose 1.4 percent. ■