Global dairy prices have recorded their biggest leap in more than three years. The Global Dairy Trade (GDT) price index jumped 5.5% at the August 20 auction, the largest percentage rise since March 2021.
The rise was led by the key whole milk powder price, which increased by 7.2%, also the biggest rise since March 2021.
“Today’s GDT auction was a stunner,” Westpac NZ chief economist Kelly Eckhold said. “Prices rose strongly more or less across the board driven by the continued return of Chinese buyers in the whole milk and skim milk products.”
Prices are now sitting 36% up on a year ago, when prices plunged to their lowest level in five years.
Butter prices are up a massive 47.7% on a year ago, while whole milk powder prices are up 36.6%.
Gains at Tuesday’s auction were broad-based with skim milk powder up 4%, anhydrous milk fat up 4.8% and butter up 3.7%.
Only cheddar prices bucked the trend, recording a slight fall of 0.2%.
Source: Farmonline.com
