Dairy prices were again higher at this week’s Fonterra Global Dairy Trade Auction on 1 September. Prices were 10,9 higher than at the previous auction on 18 August, when prices increased by 14,8%. The GDT index is now at 822, still 20% below the September 2014 level. The higher prices were caused by a change in market sentiment and a decrease in the supply of dairy. New Zealand milk production is not expected to increase significantly in the current season as producers are losing money at the current producer price. While the real effect of the increase in auction prices on South African milk producers is probably negligible, it is a clear sign that international demand may recover in time.
Published on Friday, 11th September 2015 - 19:54
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