Dairy prices have hit a new peak at Fonterra’s Global Dairy Trade auction. The GDT index shot up 5.1% to an average price of US$5,065 (NZ$7,509). Whole milk powder rose 5.7% to US$4,757 a tonne while cheddar rocketed up 10.9% to $6,394.
Butter prices gained 5.9% to an average US$7086/tonne, anhydrous milk fat 2.1% to US$7048/tonne and butter milk powder firmed 5.8% to US$4217/tonne. Skim milk powder was up 4.7% to US$4481/ tonne.
“This train isn’t slowing down,” said NZX dairy insights manager Stuart Davison.
Other business-sector commentators see the boom in the dairy sector injecting new strength into the economy at a time when it is badly needed, with other sectors like international tourism and hospitality hard hit by the Covid pandemic.
Bidding at the auction was fierce, driven by the tight supply position, as well as Russia’s war on Ukraine. Continue reading “NZ’s economic outlook is given a lift as dairy prices rise again”