Insight Focus
- New Zealand’s dairy prices are still rallying on supply concerns.
- Logistical disruption in and around US is now being reflected through higher prices.
- European supply is also tightening, lifting prices.
New Zealand: Concerns Around Supply
- Dairy prices rallied following last week’s GDT auction, especially skim milk powder.
- Higher prices reflect the market’s fears around supply.
- Milk supply is tightening as more of last season’s stock is diverted towards anhydrous milk fat and skim milk powder production.
- Anhydrous milk fat manufacturers are now operating at full capacity, and increases in supply could calm prices.
The USA: Logistical Issues Take Their Toll
- Major US ports remain heavily congested.
- Truck driver strikes in Canada have disrupted road travel.
- These disruptions are now being reflected in dairy prices.
- All apart from whey powder rallied last week.
Europe: Prices Climb as Production Dips
- Milk production has dropped in Europe.
- Butter and skim milk power prices are rallying again.
- Whey powder and milk also rallied, only on a smaller scale.
Dairy Online’s Spot Price Comparison
- Most of New Zealand’s dairy products remain competitive versus other origins.
- However, New Zealand’s cheese price is much higher than that of Europe and the US.
Other Insights That May Be of Interest…
The Dairy Industry, Now and in the Future
Innovations Within the Dairy Industry
