In yesterday's global dairy auction prices for milk and milk products has risen significantly. This confirms the expectations of professionals who see the milk market at a turning point.
The GDT index yesterday rose 12.7% to 2,731 USD/tonne. Prices for Vollmichpulver even by 18.9% and butter prices rose by 14.1%. Now, the experts agree that the price for milk is past the worst.
For New Zealand, the dairy market is the backbone of the economy, because dairy products are 25% of all exports from there. For three years, the milk price in the descent are because away broke the demand from China and the world milk market is oversupplied. 85% of New Zealand sell their milk in the production costs and write losses.
Because the supply of milk for the time being no further rises, possibly even declining, the product prices should continue to rise, so the opinion of professionals.
The global dairy trade auction will take place twice a month and the next one is on September 6. Fonterra is the largest exporter of dairy products in the world. In addition to Fonterra, Amul, Arla food Ingedients, dairy America, euro serum and Murray Gouldbourn Act on the platform. Vollmichpulver, skimmed milk powder, butter, cheese, waterless milk fat and other products will be traded.
