globalDairyTrade auction price down 8.2%

The globalDairy Trade trade weighted index dropped 8.2% in Fonterra’s fortnightly auction this morning.

The price paid for anhydrous milk fat went down 4.5%; skim milk powder was down 4.6% and whole milk powder dropped 11.4%.

The fall is the first drop for three months and follows several consecutive increases. Prices are still well above the long term average.

One Response to globalDairyTrade auction price down 8.2%

  1. Simfarmer says:

    Shouldn’t make any difference to this years payout but will be interesting to see how the next few auctions go and will give us an idea about next year. I wouldn’t be surprised if next year the payout dropped considerably – I hope plenty of dairy farmers out there have used this year to get themselves into a strong financial position. I have decided not to re-new my contract milking position for next year as I don’t think the payout will go in the right direction for the next couple. Might be a good time to be a manager (or something completely different) for awhile ! I suppose that is the benefit of lower-order compared with 50-50. Power bill arrived today (A$ 3,200 for the quarter) which is fine at $A5.80ish payout but at $4 (which im picking for next year or the year after)there are better ways to make money.

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