In the yesterday's Fonterra auction for milk products, there have been mixed price developments. The rise in prices for whole milk powder was compensated complete with price declines in other products. The index was unchanged at 2,336 USD/ton compared to the previous auction.
The mass produced whole milk powder increased prices by 1.9%, while skimmed-milk powder by 1.1% in the price. Experts in New Zealand expect soon firmer prices for dairy products.
Since 2013, the prices for milk and dairy products were deeply expire, because there's an oversupply, and the Chinese economy weakens. Currently, 85% of the dairy farmers in New Zealand make losses with their milk production.
The European Commission believes that the global supply of milk is cut back faster than what could be expected so far. That would be the prerequisite for rising milk prices.
The Fonterra dairy auction "global dairy trade" will be held twice a month. The next is scheduled for August 2. Fonterra is the world's largest exporter of dairy products. Euro serum and Murray Gouldburn participate among other companies like Fonterra, Amul, Arla Foods ingredients, dairy America, at the auction. There the products Vollmichpulver, skimmed milk powder, butter, cheese and waterless milk fat are traded u.v.m.
