Global Dairy Trade Event concluded with the Price Index up 2.7%
Dairy prices have risen in the Global Dairy Trade auction for the first time in four months. The average price increased 2.7 percent to US$2888 per tonne after hitting a near five-year low at the last auction in August. The all-important whole milk powder price – which affects the payout for local farmers – rose 5.3 percent to US$2702…
Fonterra to increase offer quantities on Global Dairy Trade (GDT)
Fonterra announced today in a press statement that, as of now, the Fonterra Co-operative Group has increased its offer of quantities for whole milk powder (WMP) and skimmed milk powder (SMP) for the next twelve months. The offering of WMP will increase by 20,000 mt over the coming 12 months, while the SMP offering will…
Fonterra slashes milk price forecast as demand slumps
Fonterra has slashed its forecast milk price for the 2023/24 season by $1 as demand slumps. On Friday the co-operative announced a revised farmgate milk price range of $6.25 to $7.25 per kilogram of milk solids, with a mid-point of $7 per kgMS. In May Fonterra said it expected to pay farmers between $7.25 and $8.75…
Government to partner with Fonterra to cut coal use in dairy
The Government has announced it will partner with Fonterra in an attempt to cut coal use in the dairy industry, and reduce agricultural emissions. The relationship will see the dairy giant commit to cutting coal usage across six of its manufacturing sites which it says will result in 2.1 million tonnes of early C02e reductions….
Fonterra cuts this season’s milk price-lower price for next season
Fonterra announced a lower opening milk price for farmers next season and also cut its forecast for this season as Chinese demand lags behind pre-pandemic levels. The co-operative expects to pay farmers between $7.25 and $8.75 per kilogram of milk solids for the season starting next month. The $8 per kgMS mid-point, which farmers are…
GDT bounce, but gains seen fragile on weak fundamentals
Global dairy prices rebounded in Wednesday’s auction, but a sustained recovery in rates that have tumbled by a third over the past year is not on the cards due to abundant supply and reduced buying by top importer China, analysts said. The Global Dairy Trade price index, which is underpinned by prices from the auction…
Carbon efficiency the better way to cut dairy farm emissions
Late last week, Greenpeace New Zealand held a protest outside Fonterra’s head office in Auckland. According to Greenpeace, the area was being transformed into a flood zone and it was calling for more government action on climate change. The “flood zone” was a few old sofas and other junk representing flood debris and a handful of people carrying placards…
Fonterra cuts milk price forecast as demand from China slackens
Fonterra has reduced and narrowed its 2022/23 season forecast to $8.20 – $8.80 per kg of milksolids, with a midpoint of $8.50, due to softer demand out of China. The previous forecast was in a range of $8.50 – $9.50 per kgMS, with a midpoint of $9.00. The co-op has also cut its forecast milk…
End of Covid zero policy in China may lift the dairy prices in future
Dairy prices have started 2023 on a soft note, However, analysts are banking on China ending its Covid-zero policy to lift prices in the coming months. Westpac’s senior agri economist Nathan Penny says the bank is sticking to its forecast milk price of $8.75/kgMS for this season. “Prices in late 2022 had been weaker than…
Lactalis buys out Fonterra-Nestlé dairy venture in Brazil
French dairy major Lactalis has acquired the joint-venture assets in Brazil owned by Fonterra and Nestlé. Lactalis, which already has a presence in the South American country, has struck a deal for Dairy Partners Americas (DPA) for BRL700m (US$131.5m). Fonterra holds a 51% stake in the venture, set up in 2003, and Nestlé owns 49%. The transaction is expected…