Uncertainty in global dairy commodity markets pushes prices downwards

DAIRY commodity markets are uncertain, according to the LTO milk price analysis from the Netherlands.

And prices at last week’s global dairy trade auction, run by New Zealand milk giant, Fonterra, fell to a 14-month low, after the company revealed record milk flows to its processing plants. The decline was led by a 7.2% tumble in prices of rennet casein, an additive to cheese.

It is attributed to Fonterra’s jump of 13% in milk collections, year-on-year, due to fine autumn weather and reasonable winter conditions in New Zealand resulting in record spring milk flows.