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


Dairy product prices record biggest drop since June 2013

Dairy product prices record biggest drop since June 2013, paced by whole, skim milk powder

March 5 (BusinessDesk) - Dairy product prices recorded their biggest decline since June last year in the latest GlobalDairyTrade auction, paced by whole and skim milk powder, suggesting New Zealand commodity prices may ease from record highs.

The GDT Price Index fell 4 percent from the last sale two weeks ago. The average winning price was US$4,794 a tonne from US$5,016 a tonne at the last auction. Some 42,037 tonnes of product was sold, up from an eight-month low 34,568 tonnes in the previous sale.

Whole milk powder, the biggest product sold by volume, fell 5.7 percent to US$4,703 a tonne and skim milk powder declined 3.9 percent to US$4,658 a tonne. Butter milk powder fell 5.8 percent to US$4,792 a tonne.

The sale follows the release yesterday of the ANZ Commodity Price Index for February, which charted a new record high, with gains for cheese, butter and casein, and comes after government figures showed the New Zealand's terms of trade gained 2.3 percent in the fourth quarter, to the highest level since December 1973, driven by dairy products.

“Fonterra had raised the volumes being offered for all the main products, apart from anhydrous milkfat,” Con Williams, agri economist at ANZ Bank New Zealand, said in a note. “The seasonal lift in supply of dairy products on GlobalDairyTrade proved difficult for the market to swallow, signalling a modest price correction could be on the cards.

“As long as supply continues to build, a moderation in prices is expected into 2014/15.”

Milk protein concentrate fell 3.3 percent to US$8,524 a tonne and butter rose 3.9 percent to US$4,746 a tonne. Cheddar rose 0.7 percent to US$4,837 a tonne. Rennet casein climbed 2.9 percent to US$11,791 a tonne and anhydrous milk fat fell 3.5 percent to US$5,126 a tonne.

Lactose wasn't offered.

There were 139 winning bidders at the auction over 11 rounds. The total number of qualified bidders rose to 796 from 793.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news