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

 

Fonterra milk powder prices reach 15-month high

Milk powder prices firm to 15-month high in Fonterra auction

By Paul McBeth

Dec. 2 (BusinessWire) – The price of milk powder continued its march higher, climbing for the fifth straight month on Fonterra Cooperative Group’s online trading auction to a 15-month high as demand for dairy products remained resilient after last year’s slump.

The average price of whole milk powder advanced 3.6% to US$3,560 per metric ton, according to the globalDairyTrade website, the highest since August last year and a 95% surge from its low in July. The price of anhydrous milk fat fell 8.6% to US$4,349 per metric ton.

“It’s a very good result in that prices have remained stable,” said Kevin Wilson, ANZ National Bank rural economist. “Forward prices didn’t have as big a premium which suggests buyers are not so desperate to secure supply.”

Fonterra expects dairy prices to begin easing when the milking season in America and Europe begins in March/April next year, and global trade managing director Kelvin Wickham says the current prices are above the long-term sustainable average. Surging dairy prices have helped underpin the recovery in New Zealand’s commodities as buyers restock their depleted inventories after they ran them down in the wake of the global financial crisis.

Manager of globalDairyTrade Paul Grave said the market was still supported by tight supply, though Fonterra expects more price volatility next year as suppliers respond to the surge since July.

Gains in commodities have been offset by a steadily climbing New Zealand dollar, which has surged about 47% from its sub-50 U.S. cents low in March. The kiwi recently traded at 72.70 cents from 72.79 cents before the results were announced.

New Zealand’s exports of milk powder, butter and cheese slumped 32% in October to $677 million from a year earlier, while casein and caseinates tumbled 43% to $58 million. Dairy products account for about 23% of the country’s annual $40.7 billion worth of exports.

(BusinessWire)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Frog Recruitment: Kiwi Workers Reluctant To Make Business Trips Across The Ditch Despite Trans-Tasman Bubble Opening

When the trans-Tasman travel bubble opens today, many Kiwi companies won't be rushing to buy an air ticket, reluctant to cross the ditch to do business. The latest survey conducted by leading recruitment agency, Frog Recruitment of nearly 1,000 New Zealand ... More>>

Tourism: Employers Welcome Back Working Holidaymakers

Tourism businesses gearing up for the return of Australian visitors from next week will be relieved to learn that they will also have access to an offshore pool of much-needed job candidates, Tourism Industry Aotearoa says. Tourism employers around ... More>>

Commerce Commission: Latest Broadband Report Confirms Improved Performance Of Premium Fibre Plans

The latest report from the Commerce Commission’s Measuring Broadband New Zealand programme shows that the performance of Fibre Max plans has improved substantially. This follows a collaboration between the Commission, its independent testing partner, ... More>>

Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>


Stats NZ: New Report Shows Impact Of Demands On Land In New Zealand

A new environmental report released today by the Ministry for the Environment and Stats NZ, presents new data on New Zealand’s land cover, soil quality, and land fragmentation. The land cover data in the report, Our land 2021 , provides the most ... More>>

ALSO:

Stats NZ: March Card Spending Rebounds Despite COVID

There was a lift in retail card spending in March following a fall in the lockdown-disrupted February month, Stats NZ said today. Seasonally adjusted retail card spending rose by $53 million (0.9 percent), compared with February 2021. Visit our website to read ... More>>

PwC: Outcome Of Review Into Air New Zealand Gas Turbines Business

Air New Zealand has received the report into its Gas Turbines business from independent external advisers PwC. Air New Zealand Chairman Dame Therese Walsh says the report identified a range of effective controls in the Gas Turbines revenue contracting ... More>>