Two encouraging signals from the dairy industry this week underlined its strength as the backbone of the NZ export economy, all the more vital since the Covid-driven collapse of the international tourist industry.
First came news that prices strengthened at the latest Fonterra global dairy trade auction, with the average price reaching $US3157 a tonne. Prices for other products sold were mixed, with gains for butter and skim milk powder, but falls for cheese and other products.
Analysts said it was positive to see good, strong demand from China. The price of wholemilk powder which strongly influences the level of payout to Fonterra’s suppliers moved up 1.8% to $US3037 a tonne.
ANZ agri-economist Susan Kilsby said there had been some concerns that stocks may be building in China, so it was really positive to see good, strong demand from that market for the dairy industry. Continue reading “A2 Milk has lost some of its sharemarket gloss but has become a formidable dairy player with a bright outlook”