Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Dairy products surge to highest since June 2011 in GDT sale

Dairy product prices surge to highest since June 2011 in GDT auction as drought weighs

March 6 (BusinessDesk) – Prices of dairy products surged to the highest since June 2011 in Fonterra's latest GlobalDairyTrade auction with the prospect of New Zealand production curtailed by drought in the North Island.

The GDT-TWI Price Index rose 10.4 percent compared to the last sale two weeks ago, the biggest increase since the June 5, 2012, sale and the sixth straight gain. The average winning price rose to US$4,216 a metric tonne, the highest in almost two years. Whole milk powder, the biggest product by volume, led the advance, soaring 18 percent to US$4,298 a tonne.

Economists are already assessing the impact of drought on New Zealand’s economic growth, which is likely to trim the amount of milk powder that Fonterra, the world’s biggest dairy exporter, can ship overseas. The company kept its forecast farmgate milk payout unchanged last month, in in the face of rising prices.

The total volume of dairy products sold at the latest auction was 21,922 tonnes, down from 33,467 tonnes a fortnight ago.

The price of anhydrous milk fat rose 4.9 percent to US$3,820 a tonne and butter milk powder rose 14.3 percent to US$4,200 a tonne. Butter rose 9.6 percent to US$4,081 a tonne and cheddar gained 8.3 percent to US$3,827 a tonne.

Lactose wasn’t offered. Milk protein concentrate climbed 11 percent to US$6,749 a tonne. Rennet casein rose 1.2 percent to US$8,930 a tonne and skim milk powder rose 4.6 percent to US$3,759 a tonne.

There were 105 winning bidders over 16 rounds. There were 200 participating bidders out of a total number of qualified bidders of 782.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Quake Insurance: Reforms To EQC Act Announced

· Increasing the monetary cap from $100,000 (plus GST) to $150,000 (plus GST) for EQC building cover.
· Clarifying EQC land cover is for natural disaster damage that directly affects the insured residence or access to it... More>>

ALSO:

Reserve Bank: Official Cash Rate Unchanged At 1.75 Percent

Global economic growth has increased and become more broad-based. However, major challenges remain with on-going surplus capacity and extensive political uncertainty... More>>

Kaikōura Earthquake: Private Insurers Receive $1.8b Claims

Insurance Council Chief Executive Tim Grafton said most is for commercial loss at $1.36 billion, with residential claims amounting to over $460 million. “...We have a high level of confidence that most people will have received settlement offers by the end of this year." More>>

ALSO:

Forms And Data: New Proposals To Simplify Personal Income Tax

The Government is proposing to make tax simpler for individuals, with people whose only income is from a salary, wages or investments no longer being required to file tax returns to receive tax refunds or to calculate any additional tax. More>>

OECD: NZ Economic Expansion Faces Long Term Challenges

The OECD Economic Survey of New Zealand discusses the gap between the strong short-term outlook and long-term challenges posed by low productivity growth and a changing labour market. More>>

ALSO:

GDP: