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Prices up after months on the down

Dairy prices jumped 16.6% at Fonterra’s latest monthly online auction today after months of falls.

Observers say that the rise, when factoring in the lower Kiwi dollar, was more like 20% in real terms.

The average selling price for whole milkpowder rose from a month earlier to $NZ4,415 (AU$3,420) per tonne, Fonterra said.

Fonterra managing director of global trade, Kelvin Wickham, said the result reflected what customers believed was a fair price in today’s uncertain market.

“This latest result is another indicator of what are seeing in the market. We expect prices to move around in this transition period as supply and demand rebalances.”

In February the average selling price for whole milkpowder had fallen 8.2%, which Wickham said at the time was not sustainable for global suppliers.

— FOODweek

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