New Zealand Milk Auction Price Surge Welcomed

UK - Ulster Farmers’ Union Dairy Committee Chairman William Cromie has welcomed the latest Fonterra Auction Results in New Zealand, which saw the average price for whole milk powder (WMP) rising by 21per cent or £688 per tonne.
calendar icon 9 April 2010
clock icon 1 minute read

The average price across all contracts and contract periods for WMP was US$3,969 per tonne.

Mr Cromie said: “This is further indication of an improving situation in global markets, with strong demand across all products. It’s also the highest price level since the first auction in July 2008 and more than double last year’s price trough in July.

“As far as production is concerned, we are seeing prices reflect a tightening supply as the Australasian production season draws to a close and this is certainly apparent in the 21 per cent surge in the price of WMP.

"Production is down in Australia and the upper North Island of New Zealand is very dry.

"This had been compounded by a cold winter in Europe which has pushed back the start to the Northern Hemisphere’s milk production season.

"Buyers appear to have paid better prices to secure supply with price rises across all product ranges (Whole Milk, Skimmed Milk Powders and Anhydrous Milk Fat) and timeframes.”

Mr Cromie added: “The results of the New Zealand auction provide a very positive signal ahead of the next Northern Ireland milk auction which will be held on Thursday 22 April”.

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