What today s dairy auction means for 2021/22 NZ milk price forecast
5 May, 2021 05:35 AM
3 minutes to read
Today s dairy auction has reinforced high milk price forecasts. Photo / Supplied
Dairy prices dipped a little at this morning s dairy auction but they have mostly remained elevated, thereby confirming the high farmgate milk price forecasts, analysts said. Westpac senior agri economist Nathan Penny said the result was consistent with the bank s 2020/21 milk price forecast of $7.90/kg.
Read More Similarly, the result means that global dairy prices remain on the front foot heading into the new dairy season, he said.
After the previous auction late last month, Penny lifted his forecast for the upcoming 2021/22 milk to $8.00/kg.
May 5, 2021, 7:00 am
I heartily commend the Irish Creamery Milk Suppliers’ Association (ICMSA) in developing its new milk price tracking system.
However, it only takes us part of the way when it comes to holding the dairy co-ops to account for, allegedly, underpaying suppliers.
What’s also required is an absolute commitment from ICMSA to publically ‘call out’ the individual co-ops, each time they are believed to have underpaid farmer suppliers.
Milk price tracking
Then the next question arises: Where do we go from there? Irish dairy farmers are very restricted in terms of moving from one milk buyer to another, should they ever wish to.
/ Donal O Leary
The Global Dairy Trade (GDT) auction result was down 0.7% this week to average $4,162, which more or less continues the steady trend in dairy commodities we saw for the last three auctions.
Volume sold at the auction was small given the time of year and season in New Zealand.
Butter was back 12% to $5,035/t and whole milk powder (WMP) was in fact up 0.7% to $4,115/t, which was a very positive result, as this is the key product traded through the auction platform.
The general trend of stability on dairy commodities holds again for this week.
The butter and skim mix is making more money and is slightly less costly to make than cheese, so those processors that have that option are winning.
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Ford has said it will have to cut production by more than a million cars. Photo / Getty Images
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NZ Herald
New Zealand
The NZX50 closed slightly lower yesterday, decreasing 0.5 per cent. Restaurant Brands New Zealand (+4.1 per cent to $13.95), which operates fast food chains such as KFC, Pizza Hut and Taco Bell in New Zealand was the biggest climber, continuing its upward trend over the last five days.
Butter index down 12.1%, average price US$5,035/MT;
BMP index up 14.4%, average price US$4,222/MT;
Ched index down 4.5%, average price US$4,274/MT;
LAC index down 2.0%, average price US$1,236/MT;
SMP index up 2.0%, average price US$3,433/MT;
SWP not offered;
WMP index up 0.7%, average price US$4,115/MT.
The most dramatic move on the day was an increase – butter milk powder (BMP) elevated by 14.4% in index. There were index rises too for skim milk powder (SMP) and whole milk powder (WMP), with increases of 2% and 0.7% respectively.
On the flip side, butter took a heavy tumble in index, down 12.1%, while there were also drops for cheddar, anhydrous milk fat AMF) and lactose – 4.5%, 4.2% and 2% respectively.