Milk Powder Auction Prices Rise to Second-Highest on Record

Farm Journal logo

Whole milk powder auction prices soar as New Zealand’s most widespread drought in at least 30 years curbs supply.

Whole milk powder auction prices rose to the second-highest on record as New Zealand’s most widespread drought in at least 30 years curbs supply.

Powder for July delivery rose 2.8 percent, according to a trade-weighted index on the Fonterra Cooperative Group Ltd.’s GlobalDairyTrade website. The near-term contract for New Zealand product rose to $6,151 a metric ton. The record was $6,283 on April 16.

Prices have surged 93 percent this year as a drought declared across the entire North Island including Waikato province, the country’s biggest milk producer, curbed milk collection. The nation may receive near-normal rainfall through July, the National Institute of Water and Atmospheric Research said last week.

Fonterra on March 27 raised its forecast payout to farmers for the current season citing rising global demand at a time of restrained supply. Milk collection in April slumped 34 percent from a year earlier, the Auckland-based company said May 8.

Fonterra, which accounts for about a third of the global trade in dairy products, sells whole, skim and butter-milk powder, dried-milk fat, lactose, butter, cheese and casein at its GlobalDairyTrade auctions. The company offers monthly contracts with delivery starting from two months after the sale. Casein is a protein found in milk.

Whole-milk powder for August delivery increased 2.9 percent while prices across all five product contracts out to November dropped 1.7 percent, Fonterra said.

In other auctions, prices for July delivery of milk fat and casein also increased, while butter, skim and butter-milk powder declined. Cheddar, lactose and milk protein concentrate weren’t offered.

 

Latest News

APHIS Now Thinks Wild Birds Are to Blame for Highly Pathogenic Avian Influenza's Arrival on Four U.S. Dairies
APHIS Now Thinks Wild Birds Are to Blame for Highly Pathogenic Avian Influenza's Arrival on Four U.S. Dairies

The livestock industry continues to grapple with the first confirmed cases of HPAI in cattle, while federal and state agencies continue to assure consumers there's no concern about the safety of the U.S. milk supply.

Success is All in the Details at Kansas Dairy Development
Success is All in the Details at Kansas Dairy Development

Kansas Dairy Development provides temporary housing for up to 80,000 head of cattle — from a few days old to springers nearly ready to calve. Their formula for success is all in the details.

Skills Survey Reveals U.S. Agriculture & Food Industry Workforce Needs and Gaps
Skills Survey Reveals U.S. Agriculture & Food Industry Workforce Needs and Gaps

U.S. employers report challenges in finding suitable job candidates with work-ready skills to fill open roles in ag. The AgCareers.com U.S. Skills Survey offers insights, data and trends to address skill development.

Built Out of Love: How Two Sisters Created a Super-Fast-Growing Yogurt Company
Built Out of Love: How Two Sisters Created a Super-Fast-Growing Yogurt Company

Travel to the rolling hills of Pennsylvania, and you’ll meet Hayley and Stephanie Painter who not only made the Forbes 30 under 30 list, but have also created one of the fastest growing yogurt company in the U.S.

"Boring" Technology Will Reshape Dairy Over the Next 10 Years
"Boring" Technology Will Reshape Dairy Over the Next 10 Years

Once a technology becomes a boring experience it means it has become proven, well-adopted, and easy to utilize. There are three "boring" technologies silently shaping the industry.

Influential Dairy Leaders Awarded World Dairy Expo Recognition Awards
Influential Dairy Leaders Awarded World Dairy Expo Recognition Awards

World Dairy Expo is delighted to announce the recipients of the 2024 Expo Recognition Awards. These individuals have made remarkable contributions to the dairy industry and their communities.