Milk price up again

March 2, 2011

The trade weighted index went up by 5.9% in this morning’s globalDairy Trade auction.

The price paid for anhydrous milk fat increased 1.1%; skim milk power went up 2.3% and the price of whole milk powder increased 9.6%.

This puts the TWI well above the long term average and is a little bit of good news for the New Zealand economy.

Dairy price up again

February 2, 2011

The trade weighted index for Fonterra’s globalDairy Trade auction increased 7.2% at this morning’s auction.

The price of Anhydrous milk fat went up 9.2%; there was no change in the price of butter milk powder, skim milk powder increased 8.5%; and whole milk powder went up 5.7%.

The TWI is now back up to levels not seen since late 2006.

GDT Trade Weighted Index

Small increase in globalDairy Trade twi

January 19, 2011

The trade weighted index increased 1.2% in this morning’s globalDairyTrade auction.

The price for anhydrous milk fat dropped .3%; butter milk powder went up 14.5%; skim milk powder increased 2.4%; and whole milk powder went up .5%.

While on the subject of dairy prices, trying to compare dairy production and prices around the world isn’t easy.

Here we value milk in $s per kilo of milk solids (which is fat plus crude portein).

Australian dairy farms talk about cents per litre.

In the USA its $s per hundredweight (and that’s a USA hundredweight not a British one).

Europeans work in Euros per 100 kilograms.

In Britain it’s pence per litre.

So how do you compare one with another?

Over at Xchequer Neil Lane attempts to make sense out of units of milk price and has a link to the Xheque milk price calculator.

Milk price up 1.6%

December 2, 2010

The trade weighted price of milk increased 1.6% in Fonterra’s latest globalDairy Trade auction.

The price paid for anhydrous milk fat increased .3%; butter milk powder decreased 2.7%;  skim milk powder went up .5% and whole milk powder increased 2.6%.

Fonterra milk peak sets new record

November 3, 2010

Fonterra’s 26 sites processed 7608 million litres of milk last Wednesday, October 27, setting a new record for peak production.

Gary Romano, Managing Director – Fonterra Trade and Operations, says the new record is three million litres up on last year’s record peak.

“It’s a real credit to our teams and our plants that we processed all the milk so smoothly.

“It was a slow start to the season with wet weather in the Waikato and Taranaki and snow in the South Island. However, this recent spell of fine weather has seen a sharp increase in production on-farm. . .

“Since Fonterra was formed, we’ve increased our processing abilities by investing in new technology and plants such as ED4 – the most efficient powder plant in the world – to ensure we can keep ahead of milk production increases in an efficient and sustainable way.

“We’ve handled this growth while maintaining a strong focus on the quality of our products and the health and safety of our people and we’re setting internal quality benchmarks in a number of areas as we continue to focus on improving our performance.

Mr Romano said season-to-date, overall milk production was now slightly ahead of last year but, with the season only a third of the way through, it was too early to talk about actual production figures for the year.

Prices were stable in this morning’s globalDairy Trade auction with no change in the trade weighted index.

The price of whole milk powder was even at $3495 a tonne; skim milk powder dropped 1.1% to $3,021; anhydrous milk fat was up 4.5% to $5,394 and butter milk powder was down 1.8% to $3,011.

In a newsletter to shareholders Fonterra chair Henry van der Heyden said CWT (Co-operatives Working Together) in the USA have stopped culling cows in favour of export subsidies.

Cheese prices are likely to come under pressure as a result of subsidised product from there but butter is still in tight supply in the USA and Europe.

Production in Australia has been hit by wet weather in September.

Dairy prices a wee bit lower

October 20, 2010

Prices dropped a wee bit in Fonterra’s globalDairy Trade auction overnight.

The price for anhydrous milk fat was down 1.2%; butter milk powder dropped 1.1%; skim milk powder was down 4.7%;  whole milk powder was down 1.1% and the trade-weighted price for all products dropped 2.5%.

Prices are still above the long term average.

Milk price down 1.3%

October 6, 2010

The trade weighted price for all milk dropped 1.3% in Fonterra’s globalDairy Trade auction this morning.

Given that production is increasing in the USA, Euorpe and Australia that’s not surprsiing.

Anhydours Milk Fat went up 1.4%; Butter Milk Powder was up 2.8%; Skim Milk Powder dropped .9%; and Whole Milk Powder was down 2.1%.

Welcome recovery in milk prices at acution

September 2, 2010

The first of Fonterra’s globalDairy Trade twice-monthly auctions resulted in a welcome recovery in price.

Anhydrous Milk Fat went up 9.5%, Butter Milk Powder was up 10.6%, the price for Skim Milk Powder increased 15.8%, Whole Milk Powder increased by 18.8% and all products on a trade-weighted basis went up 16.9%.

Although prices in the last three auctions were still above the long term average they had dropped which was concerning.

Fonterra’s recent decision to hold the forecast payout for the season at $6.90 to $7.10 was based on confidence prices would firm. This morning’s auction provides welcome confirmation of that.

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