Global dairy prices fall again

Dairy prices have fallen for a fifth consecutive global auction.

The Global Dairy Trade price index dropped 2.9% to 1129 at the latest fortnightly auction overnight yesterday, the lowest level since January 2021. It follows a 5% decline at the previous fortnightly auction.

Dairy prices have slid from record levels in March this year, as disruption from Covid-19 lockdowns in China, an economic crisis in Sri Lanka and the Russia-ukraine war have weighed on demand and buyers have balked at higher prices in an environment of high inflation and tight consumer spending.

NZX dairy insightsmanager Stuart Davison described the latest auction as ‘‘snappy’’, taking less than two hours and only 11 rounds to finalise bidding.

The whole milk powder price index fell 3.5%, with the average price dropping to US$3417 (NZ$5280) a tonne, the lowest level since January 2021. That follows a 6.1% fall at the previous auction. The anhydrousmilk fat index had the biggest decline of 9.8%. Cheddar was up 4.2%, butter up 0.2% and skim milk powder up 0.1%.