GLOBAL – The Global Dairy Trade reported a 3.1 per cent drop in its index on Tuesday, leaving it at the lowest point since August 2009.
Milk powders both slipped over 5 per cent lower, with the main drop coming from Rennet Casein dropping 12.2 per cent.
This was enough to counter gains across Butter, Cheddar and Anhydrous Milk Fat. Butter Milk Powder also lifted 1.4 per cent.
The result was linked with a subsequent cut of eight per cent to Fonterra’s milk price forecast by UK analysts at DairyCo.
The levy board stated that, while results have not been as “dramatic” as earlier, a recovery is still not underway.
“Fonterra’s milk price in part reflects GDT values for WMP and SMP,” said a DairyCo spokesperson.
“The continuing declines have led to suggestions from NZ economists that Fonterra may cut its 2014-15 forecast milk price when it reviews its forecasted pay-out price in mid-December, which currently stands at $5.30/kg MS.”