Dairy product prices climb, bolstered by butter

Wednesday 7th January 2015

Dairy product prices increased in the latest GlobalDairyTrade auction, led by gains in butter and butter milk powder.

The GDT average winning price rose 3.6 percent to US$2,709, up from US$2,609 two weeks ago. Some 33,669 tonnes of product was sold, down from 35,390 tonnes of product two weeks ago.

Dairy products were among a number of commodities that came under pressure in 2014, including iron ore and oil, with prices almost halving in the calendar year as an oversupply in China and increased production in the Northern Hemisphere eroded demand for New Zealand products.

Government data last month showed New Zealand's export receipts for milk powder, butter and cheese sank 27 percent to $1.2 billion in November from a year earlier.

Butter climbed 13.2 percent to US$3,558 a tonne, while butter milk powder rose 10.5 percent to US$2,736.

Anhydrous milk fat added 6.8 percent to US$4,493 a tonne, while rennet casein increased 4.2 percent to US$7,911 a tonne, and cheddar gained 3.2 percent to US$3,090 a tonne

Skim milk powder advanced 2.8 percent to US$2,386 a tonne, and whole milk powder rose 1.6 percent to US$2,307 a tonne.

Sweet whey powder was not offered, not sold, or sold at its starting price in either the current event and/or in the prior two events.

Lactose was not offered at the latest event.

The New Zealand dollar last traded at 78.10 US cents at about 12:25pm in New York, up from 77.25 US cents at 5pm in Wellington on Tuesday.

There were 121 winning bidders out of 173 participating bidders at the 14 round auction. The number of qualified bidders rose to 671, from 667 at the last auction.

BusinessDesk.co.nz

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