Fonterra dairy product prices resume downward slide in latest auction, falling 1.2%

Wednesday 2nd November 2011

Average prices of dairy products resumed their downward slide in Fonterra Cooperative Group’s latest auction, the ninth decline in the past 10 sales and the first since the company cut its forecast 2012 payout.

The GDT-TWI Price Index fell 1.2 percent, according to the latest results posted on the globalDairyTrade auction website. The average winning price declined to US$3,511 a metric tonne. Whole milk powder, the biggest product by volume, fell 0.8 percent.

Fonterra chairman Henry Van der Heyden said on Oct. 25 that global dairy prices hadn’t recovered as expected as rival producers ramped up production and the stronger kiwi dollar was exacerbating the impact. The payout to farmers for 2012 would be lower than 2011’s record payout.

Whole milk powder fell to US$3,487 a tonne in the latest sale while skim milk powder gained 0.2 percent to US$3,292. Anhydrous milk fat fell 9.3 percent to US$3,309 a tonne and milk protein concentrate fell 10.7 percent to US$5,608 a tonne. Rennet casein jumped 35 percent to US$9,182 a tonne. Butter milk powder fell 2.2 percent to US$2,934 a tonne and cheddar fell 3.2 percent to US$3,406 a tonne.

There were 122 winning bidders from 149 participants over 16 rounds. The platform has 463 qualified bidders, up from 443 at the last auction.

BusinessDesk.co.nz

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