Low $ compensates for drop in milk price

The New Zealand dollar reached a six-month low overnight which will more than compensate for the 1.6% drop in the trade weighted index in Fonterra’s globalDairyTrade auction.

Changes in Price Indices
Anhydrous Milk Fat (AMF)


Butter Milk Powder (BMP)


Cheddar .


Milk Protein Concentrate (MPC70)


Rennet Casein (RenCas)


Skim Milk Powder (SMP)


Whole Milk Powder (WMP)


All Products (Trade-Weighted)


Prices are still above the long term average but this is the eight consecutive drop in trade weighted price on the GDT auction platform.

It is also the first time Dairy America products have been in the auction, not that there is a link between those two factors.


3 Responses to Low $ compensates for drop in milk price

  1. mort says:

    A strong dollar would allow our woeful productivity to be improved through easier access to new technology/ tools, to improve production.
    It would allow us to become a stronger Nation by allowing us to pay off our debts faster.
    It would allow us to solidify our currency by following in the footsteps of China, India, Brazil, and many other nations who are expecting a currency debasement, and are preparing for it by buying physical Gold. The great correction is under way, and it is only a matter of time until real assets which produce cash flow in other countries will become cheap. It is at this time that you trade the gold for the assets, and reap the rewards.


  2. homepaddock says:

    Mort – IThere are pluses and minuses when when the dollar is stronger and when it’s weaker.


  3. mort says:

    indeed, 1 is short term and the other is long term stability and wealth


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