Fonterra dairy product prices fall 1.4% to lowest level since November 2010
Sept. 7 (BusinessDesk) – Average prices of dairy products fell for the sixth straight sale in Fonterra Cooperative Group’s latest online auction, reaching the lowest level in 10 months.
The GDT-TWI Price Index fell 1.4% to US$3,580 a metric tonne, according to results posted on the globalDairyTrade auction website. Whole milk powder fell to its lowest level since August last year.
Milk powder prices have declined 16% from their peak in March, based on the ANZ Commodity Price Index and last week Fonterra confirmed its forecast for a decline in payments to farmers for the 2012 season, after what is expected to be a record payout for 2011.
company first flagged the payment drop in May and chairman
Henry van der Heyden said last week that it is sticking to
the forecast even in the face
of “volatile economic and market conditions.”
Whole milk powder fell an average 1.6% to US$3,314 a tonne in the latest sale. Skim milk powder rose 0.3% to US$3,444 a tonne. Anhydrous milk fat rose 2% to US$4,353 a tonne and milk protein concentrate rose 4.9% to US$6,263 a tonne.
Rennet casein fell gained
0.9% to US$9,547 a tonne. Butter milk powder dropped
12% to US$2,988 a tonne.
There were 128 winning bidders from 166 participants over 11 rounds. The platform has 387 qualified bidders, up from 355 at the last auction.