The contaminated whey scare did not had the disastrous impact on last night’s GlobalDairyTrade auction that many had feared.
The trade weighted price dropped only 2.4% which isn’t a big change in comparison to others this year.
Rennet casein was the only product to increase in price (1.2%) but whole milk powder, on which the payout is largely based, was down only 1.6% .
The price of anhydrous milk fat dropped 4.9%; butter dropped 5.5%; butter milk was down 0.4%; cheddar was down 4.4%; and skim milk powder fell 3%.
Prices are still well above the long-term average and the relatively small fall in the trade weighted index indicates that customers still trust Fonterra’s products.