NZ’s economic outlook is given a lift as dairy prices rise again

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”